In the latest trading session, Salesforce.com (CRM) closed at $236.58, marking a -1.33% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.4%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
The stock of customer-management software developer has risen by 0.19% in the past month, lagging the Computer and Technology sector's gain of 2.27% and the S&P 500's gain of 1.02%.
Market participants will be closely following the financial results of Salesforce.com in its upcoming release. The company is predicted to post an EPS of $2.85, indicating a 18.26% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.26 billion, up 8.68% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $11.35 per share and a revenue of $41.21 billion, demonstrating changes of +11.27% and +8.76%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. Salesforce.com currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 21.13 right now. For comparison, its industry has an average Forward P/E of 27.71, which means Salesforce.com is trading at a discount to the group.
We can additionally observe that CRM currently boasts a PEG ratio of 1.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Salesforce Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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