Salesforce.com (CRM) ended the recent trading session at $265.38, demonstrating a +0.94% swing from the preceding day’s closing price. The stock’s change was less than the S&P 500’s daily gain of 0.97%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1.39%.
The customer-management software developer’s shares have seen an increase of 6.17% over the last month, surpassing the Computer and Technology sector’s loss of 5.36% and the S&P 500’s loss of 1.85%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. The company is slated to reveal its earnings on August 28, 2024. On that day, Salesforce.com is projected to report earnings of $2.36 per share, which would represent year-over-year growth of 11.32%. Simultaneously, our latest consensus estimate expects the revenue to be $9.23 billion, showing a 7.29% escalation compared to the year-ago quarter.
CRM’s full-year Zacks Consensus Estimates are calling for earnings of $9.90 per share and revenue of $37.83 billion. These results would represent year-over-year changes of +20.44% and +8.53%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Salesforce.com is currently a Zacks Rank #4 (Sell).
In terms of valuation, Salesforce.com is presently being traded at a Forward P/E ratio of 26.55. This denotes a discount relative to the industry’s average Forward P/E of 30.61.
Meanwhile, CRM’s PEG ratio is currently 1.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. By the end of yesterday’s trading, the Computer – Software industry had an average PEG ratio of 2.32.
The Computer – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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