Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know
Salesforce.com (CRM) closed the most recent trading day at $169.05, moving -1.16% from the previous trading session. This change lagged the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Heading into today, shares of the customer-management software developer had gained 21.73% over the past month, outpacing the Computer and Technology sector's gain of 17.44% and the S&P 500's gain of 8.32% in that time.
Investors will be hoping for strength from Salesforce.com as it approaches its next earnings release. The company is expected to report EPS of $1.36, up 61.9% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.99 billion, up 9% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 moved 5.95% higher. Salesforce.com is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Salesforce.com is holding a Forward P/E ratio of 29.37. This valuation marks a premium compared to its industry's average Forward P/E of 28.5.
We can also see that CRM currently has a PEG ratio of 1.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.
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