Salesforce.com (CRM) closed the most recent trading day at $161.82, moving +0.44% from the previous trading session. The stock outpaced the S&P 500’s daily loss of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the customer-management software developer had gained 10.04% in the past month. In that same time, the Computer and Technology sector gained 8.71%, while the S&P 500 gained 7.08%.
CRM will be looking to display strength as it nears its next earnings release, which is expected to be December 3, 2019. The company is expected to report EPS of $0.65, up 6.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.45 billion, up 31.16% from the prior-year quarter.
CRM’s full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $16.86 billion. These results would represent year-over-year changes of +3.27% and +26.95%, respectively.
It is also important to note the recent changes to analyst estimates for CRM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. 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 56.69 right now. This represents a premium compared to its industry’s average Forward P/E of 30.33.
Investors should also note that CRM has a PEG ratio of 3.02 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. CRM’s industry had an average PEG ratio of 2.25 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 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.
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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