In the latest market close, Salesforce.com (CRM) reached $290.17, with a +0.78% movement compared to the previous day. The stock’s change was more than the S&P 500’s daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.05%.
The the stock of customer-management software developer has risen by 15.37% in the past month, leading the Computer and Technology sector’s gain of 9.62% and the S&P 500’s gain of 5.94%.
The upcoming earnings release of Salesforce.com will be of great interest to investors. On that day, Salesforce.com is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 15.17%. Meanwhile, our latest consensus estimate is calling for revenue of $9.34 billion, up 7.1% from the prior-year quarter.
CRM’s full-year Zacks Consensus Estimates are calling for earnings of $10.08 per share and revenue of $37.86 billion. These results would represent year-over-year changes of +22.63% and +8.6%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Right now, Salesforce.com possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is presently being traded at a Forward P/E ratio of 28.56. This indicates a discount in contrast to its industry’s Forward P/E of 29.68.
It’s also important to note that CRM currently trades at a PEG ratio of 1.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Computer – Software industry currently had an average PEG ratio of 2.48 as of yesterday’s close.
The Computer – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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