Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
Salesforce.com (CRM) closed the most recent trading day at $146.17, moving -0.54% from the previous trading session. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.4%.
Heading into today, shares of the customer-management software developer had lost 3.8% over the past month, lagging the Computer and Technology sector's gain of 0.51% and the S&P 500's loss of 0.14% in that time.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. The company is expected to report EPS of $0.65, up 6.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.45 billion, up 31.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.84 per share and revenue of $16.86 billion. These totals would mark changes of +3.27% and +26.95%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CRM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. CRM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 51.71 right now. For comparison, its industry has an average Forward P/E of 27.69, which means CRM is trading at a premium to the group.
Investors should also note that CRM has a PEG ratio of 2.76 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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.