Salesforce.com (CRM) ended the recent trading session at $214.08, demonstrating a -6.09% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.72%.
The customer-management software developer's shares have seen a decrease of 13.95% over the last month, not keeping up with the Computer and Technology sector's gain of 1.88% and the S&P 500's gain of 0.78%.
Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.05, reflecting a 9.71% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.17 billion, indicating a 11.73% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.76 per share and a revenue of $41.5 billion, representing changes of +15.29% and +9.5%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has remained steady. Salesforce.com is currently a Zacks Rank #3 (Hold).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 19.39. This valuation marks a discount compared to its industry average Forward P/E of 21.32.
It's also important to note that CRM currently trades at a PEG ratio of 1.29. 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. The Computer - Software industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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