Salesforce.com (CRM) closed the most recent trading day at $305.49, moving -0.38% from the previous trading session. This change lagged the S&P 500’s daily of 0%.
Coming into today, shares of the customer-management software developer had gained 5.14% in the past month. In that same time, the Computer and Technology sector gained 9.31%, while the S&P 500 gained 7.79%.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which is expected to be November 30, 2021. The company is expected to report EPS of $0.92, down 47.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.79 billion, up 25.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.40 per share and revenue of $26.3 billion, which would represent changes of -10.57% and +23.74%, respectively, from the prior year.
Any recent changes to analyst estimates for CRM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. CRM currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, CRM currently has a Forward P/E ratio of 69.77. This represents a premium compared to its industry’s average Forward P/E of 38.48.
Meanwhile, CRM’s PEG ratio is currently 4.17. 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. Computer – Software stocks are, on average, holding a PEG ratio of 2.97 based on yesterday’s closing prices.
The Computer – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts 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.
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