Salesforce.com (CRM) closed the latest trading day at $251.31, indicating a -0.48% change from the previous session’s end. Meanwhile, the Dow experienced a drop of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.21%.
The customer-management software developer’s stock has dropped by 0.57% in the past month, exceeding the Computer and Technology sector’s loss of 11.22% and the S&P 500’s loss of 4.22%.
Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on August 28, 2024. The company’s earnings per share (EPS) are projected to be $2.36, reflecting a 11.32% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.23 billion, up 7.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and revenue of $37.83 billion, which would represent changes of +20.44% and +8.53%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Salesforce.com possesses a Zacks Rank of #4 (Sell).
Investors should also note Salesforce.com’s current valuation metrics, including its Forward P/E ratio of 25.5. This indicates a discount in contrast to its industry’s Forward P/E of 29.65.
Also, we should mention that CRM has a PEG ratio of 1.67. 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. Computer – Software stocks are, on average, holding a PEG ratio of 2.28 based on yesterday’s closing prices.
The Computer – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 44% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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