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Salesforce.com (CRM) closed the most recent trading day at $267.92, moving +1.22% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.
Coming into today, shares of the customer-management software developer had lost 4.72% in the past month. In that same time, the Computer and Technology sector lost 6.23%, while the S&P 500 lost 4.77%.
The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. The company's upcoming EPS is projected at $2.54, signifying a 4.1% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.74 billion, indicating a 6.61% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.11 per share and a revenue of $40.75 billion, representing changes of +8.92% and +7.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% decrease. Salesforce.com is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 23.82 right now. This represents a discount compared to its industry's average Forward P/E of 25.66.
We can additionally observe that CRM currently boasts a PEG ratio of 1.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CRM's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 30% of all industries, numbering over 250.