Salesforce.com (CRM) closed the most recent trading day at $251.46, moving -1.1% from the previous trading session. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.55%.
Coming into today, shares of the customer-management software developer had gained 7.28% in the past month. In that same time, the Computer and Technology sector gained 6.92%, while the S&P 500 gained 3.83%.
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. Meanwhile, our latest consensus estimate is calling for revenue of $10.26 billion, up 8.68% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.36 per share and a revenue of $41.21 billion, signifying shifts of +11.37% and +8.76%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforcecom. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0% lower within the past month. At present, Salesforce.com boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Salesforce.com is at present trading with a Forward P/E ratio of 22.39. This represents a discount compared to its industry average Forward P/E of 29.41.
We can also see that CRM currently has a PEG ratio of 1.61. 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. CRM's industry had an average PEG ratio of 2.16 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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