In the latest trading session, Salesforce.com (CRM) closed at $228.09, marking a +2.94% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.91%.
Shares of the customer-management software developer witnessed a loss of 16.47% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.04%, and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Salesforce.com in its upcoming release. On that day, Salesforce.com is projected to report earnings of $3.05 per share, which would represent year-over-year growth of 9.71%. Simultaneously, our latest consensus estimate expects the revenue to be $11.19 billion, showing a 11.94% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.76 per share and revenue of $41.51 billion, indicating changes of +15.29% and +9.53%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Salesforcecom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Currently, Salesforce.com is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 18.84. This represents a discount compared to its industry average Forward P/E of 21.11.
We can also see that CRM currently has a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 1.65 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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