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Salesforce.com (CRM) Outpaces Stock Market Gains: What You Should Know

Salesforce.com (CRM) closed the most recent trading day at $158.99, moving +0.81% from the previous trading session. This change outpaced the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.74%.

Coming into today, shares of the customer-management software developer had gained 10.9% in the past month. In that same time, the Computer and Technology sector gained 9.76%, while the S&P 500 gained 7.71%.

CRM will be looking to display strength as it nears its nex t earnings release. On that day, CRM is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 60%. Our most recent consensus estimate is calling for quarterly revenue of $3.56 billion, up 24.92% from the year-ago period.

Any recent changes to analyst estimates for CRM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate has moved 0.22% higher. CRM currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, CRM is currently trading at a Forward P/E ratio of 57.66. This represents a premium compared to its industry's average Forward P/E of 27.91.

We can also see that CRM currently has a PEG ratio of 2.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CRM's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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