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Salesforce.com (CRM) Stock Moves -0.28%: What You Should Know

Salesforce.com (CRM) closed the most recent trading day at $120.67, moving -0.28% from the previous trading session. This change was narrower than the S&P 500's 1.82% loss on the day. Meanwhile, the Dow lost 2.21%, and the Nasdaq, a tech-heavy index, lost 1.7%.

Coming into today, shares of the customer-management software developer had lost 15.35% in the past month. In that same time, the Computer and Technology sector lost 5.96%, while the S&P 500 lost 2.57%.

Investors will be hoping for strength from CRM as it approaches its next earnings release, which is expected to be November 27, 2018. The company is expected to report EPS of $0.50, up 28.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.37 billion, up 25.68% from the year-ago period.

CRM's full-year Zacks Consensus Estimates are calling for earnings of $2.51 per share and revenue of $13.17 billion. These results would represent year-over-year changes of +85.93% and +25.7%, respectively.

It is also important to note the recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. CRM currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 48.13 right now. This represents a premium compared to its industry's average Forward P/E of 30.76.

It is also worth noting that CRM currently has a PEG ratio of 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.97 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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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