Salesforce.com (CRM - Free Report) closed the most recent trading day at $173.19, moving +1.08% from the previous trading session. The stock lagged the S&P 500's daily gain of 3.15%. At the same time, the Dow added 3.85%, and the tech-heavy Nasdaq gained 2.44%.
Prior to today's trading, shares of the customer-management software developer had gained 9.09% over the past month. This has outpaced the Computer and Technology sector's gain of 5.44% and the S&P 500's gain of 0.38% in that time.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which is expected to be May 28, 2020. The company is expected to report EPS of $0.69, down 25.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.85 billion, up 29.87% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.10 per share and revenue of $20.81 billion. These totals would mark changes of +3.68% and +21.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. CRM is currently a Zacks Rank #4 (Sell).
Digging into valuation, CRM currently has a Forward P/E ratio of 55.24. Its industry sports an average Forward P/E of 28.09, so we one might conclude that CRM is trading at a premium comparatively.
Investors should also note that CRM has a PEG ratio of 3.07 right now. 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. The Computer - Software was holding an average PEG ratio of 2.37 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.