Salesforce.com (CRM) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with Salesforce.com (CRM) standing at $290.86, reflecting a +0.87% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.
Shares of the customer-management software developer have appreciated by 12.99% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.
Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.43, indicating a 15.17% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.34 billion, indicating a 7.1% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.08 per share and a revenue of $37.86 billion, indicating changes of +22.63% and +8.6%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. Salesforce.com presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is presently being traded at a Forward P/E ratio of 28.6. This expresses a discount compared to the average Forward P/E of 29.8 of its industry.
Investors should also note that CRM has a PEG ratio of 1.95 right now. 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 2.54 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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