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.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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