In the latest trading session, Salesforce.com (CRM) closed at $298.01, marking a +1.12% move from the previous day. The stock’s performance was ahead of the S&P 500’s daily loss of 0.28%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.33%.
Shares of the customer-management software developer have appreciated by 2.42% over the course of the past month, outperforming the Computer and Technology sector’s gain of 2.1% and the S&P 500’s gain of 0.41%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. The company is forecasted to report an EPS of $2.43, showcasing a 15.17% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $9.34 billion, reflecting a 7.1% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and revenue of $37.86 billion, which would represent changes of +22.63% and +8.6%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Salesforce.com is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, Salesforce.com is at present trading with a Forward P/E ratio of 29.24. This signifies a discount in comparison to the average Forward P/E of 29.76 for its industry.
Meanwhile, CRM’s PEG ratio is currently 2. 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 industry had an average PEG ratio of 2.43 as trading concluded yesterday.
The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
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