Salesforce.com (CRM - Free Report) closed at $188.34 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 1.5% gain on the day. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 2.1%.
Prior to today's trading, shares of the customer-management software developer had gained 6.9% over the past month. This has outpaced the Computer and Technology sector's gain of 3.43% and the S&P 500's gain of 0.54% in that time.
CRM will be looking to display strength as it nears its next earnings release. On that day, CRM is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 21.43%. Our most recent consensus estimate is calling for quarterly revenue of $4.75 billion, up 31.84% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CRM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. CRM is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, CRM is currently trading at a Forward P/E ratio of 59.76. This valuation marks a premium compared to its industry's average Forward P/E of 31.43.
We can also see that CRM currently has a PEG ratio of 3.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.