Salesforce.com (CRM) closed the most recent trading day at $199.44, moving +1.56% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq depreciated by 1.51%.
Shares of the customer-management software developer witnessed a loss of 25.3% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.27%, and the S&P 500's gain of 0.93%.
The upcoming earnings release of Salesforce.com will be of great interest to investors. It is anticipated that the company will report an EPS of $3.05, marking a 9.71% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.17 billion, indicating a 11.73% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.76 per share and revenue of $41.5 billion, which would represent changes of +15.29% and 0%, 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 help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.53% increase. Salesforce.com currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Salesforce.com is presently being traded at a Forward P/E ratio of 15.09. This represents a discount compared to its industry average Forward P/E of 18.28.
It's also important to note that CRM currently trades at a PEG ratio of 1. 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 was holding an average PEG ratio of 1.47 at yesterday's closing price.
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 gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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