Salesforce.com (CRM) ended the recent trading session at $253.62, demonstrating a -4.26% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq lost 0.03%.
Shares of the customer-management software developer have appreciated by 7.05% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.02%, and the S&P 500's gain of 0.54%.
The upcoming earnings release of Salesforce.com will be of great interest to investors. The company is predicted to post an EPS of $3.05, indicating a 9.71% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.19 billion, indicating a 11.94% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.76 per share and a revenue of $41.49 billion, indicating changes of +15.29% and +9.48%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Salesforcecom. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.06% higher. Salesforce.com is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 22.53. This expresses a premium compared to the average Forward P/E of 22.43 of its industry.
We can also see that CRM currently has a PEG ratio of 1.5. 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. The Computer - Software industry currently had an average PEG ratio of 1.93 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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