Salesforce.com (CRM) closed at $154.92 in the latest trading session, marking a -1.63% move from the prior day. This move lagged the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 1.43%.
Prior to today's trading, shares of the customer-management software developer had gained 8.07% over the past month. This has outpaced the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 2.44% in that time.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which is expected to be November 20, 2018. In that report, analysts expect CRM to post earnings of $0.50 per share. This would mark year-over-year growth of 28.21%. Our most recent consensus estimate is calling for quarterly revenue of $3.37 billion, up 25.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.52 per share and revenue of $13.17 billion. These totals would mark changes of +86.67% and +25.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 20.59% higher. CRM is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, CRM is holding a Forward P/E ratio of 129.4. This valuation marks a premium compared to its industry's average Forward P/E of 44.62.
We can also see that CRM currently has a PEG ratio of 5.18. 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. Computer - Software stocks are, on average, holding a PEG ratio of 3.15 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much 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.