Salesforce.com (CRM) closed at $162.50 in the latest trading session, marking a -0.51% move from the prior day. This move lagged the S&P 500’s daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.
Coming into today, shares of the customer-management software developer had gained 3.04% in the past month. In that same time, the Computer and Technology sector gained 2.84%, while the S&P 500 gained 2.62%.
CRM will be looking to display strength as it nears its next earnings release. In that report, analysts expect CRM to post earnings of $0.61 per share. This would mark a year-over-year decline of 17.57%. Our most recent consensus estimate is calling for quarterly revenue of $3.68 billion, up 22.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.66 per share and revenue of $16.11 billion, which would represent changes of -3.27% and +21.31%, respectively, from the prior 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 9.66% lower. CRM is currently a Zacks Rank #3 (Hold).
Digging into valuation, CRM currently has a Forward P/E ratio of 61.35. This represents a premium compared to its industry’s average Forward P/E of 32.96.
Also, we should mention that CRM has a PEG ratio of 2.68. 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 2.27 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 36, putting it in the top 15% 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.
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