In This Article:
Salesforce.com (CRM) closed at $354 in the latest trading session, marking a -1.65% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.51%.
Coming into today, shares of the customer-management software developer had gained 7.66% in the past month. In that same time, the Computer and Technology sector lost 0.19%, while the S&P 500 gained 1.67%.
Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.60, indicating a 13.54% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.04 billion, showing an 8.06% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.03 per share and a revenue of $37.94 billion, demonstrating changes of +22.02% and +8.84%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Salesforce.com. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. 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 35.88. This expresses a premium compared to the average Forward P/E of 31.18 of its industry.
It's also important to note that CRM currently trades at a PEG ratio of 2.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.42.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 40% echelons of all 250+ industries.