The most recent trading session ended with Salesforce.com (CRM) standing at $269.33, reflecting a +0.23% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Elsewhere, the Dow saw an upswing of 0.21%, while the tech-heavy Nasdaq appreciated by 1.52%.
The the stock of customer-management software developer has fallen by 1.04% in the past month, lagging the Computer and Technology sector's gain of 1.66% and the S&P 500's loss of 0.7%.
The upcoming earnings release of Salesforce.com will be of great interest to investors. In that report, analysts expect Salesforce.com to post earnings of $2.54 per share. This would mark year-over-year growth of 4.1%. In the meantime, our current consensus estimate forecasts the revenue to be $9.74 billion, indicating a 6.61% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.11 per share and revenue of $40.75 billion. These totals would mark changes of +8.92% and +7.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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, there's been a 0.17% fall in the Zacks Consensus EPS estimate. Salesforce.com is currently a Zacks Rank #3 (Hold).
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 24.18. This signifies a discount in comparison to the average Forward P/E of 26.97 for its industry.
It is also worth noting that CRM currently has a PEG ratio of 1.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.27 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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