Salesforce.com (CRM) ended the recent trading session at $256.64, demonstrating a -2.57% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.71%, and the technology-dominated Nasdaq saw a decrease of 0.93%.
Prior to today's trading, shares of the customer-management software developer had gained 7.71% outpaced the Computer and Technology sector's gain of 1.25% and the S&P 500's gain of 1.13%.
Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. On that day, Salesforce.com is projected to report earnings of $2.85 per share, which would represent year-over-year growth of 18.26%. Simultaneously, our latest consensus estimate expects the revenue to be $10.26 billion, showing a 8.68% escalation compared to the year-ago quarter.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $11.35 per share and revenue of $41.21 billion. These results would represent year-over-year changes of +11.27% and +8.76%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Salesforcecom. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.8% increase. Salesforce.com is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 23.22 right now. For comparison, its industry has an average Forward P/E of 28.81, which means Salesforce.com is trading at a discount to the group.
It is also worth noting that CRM currently has a PEG ratio of 1.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.1.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 42% echelons of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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