Salesforce.com (CRM) closed the most recent trading day at $196.38, moving -0.68% from the previous trading session. This change was narrower than the S&P 500's 1.08% loss on the day. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 0.86%.
Coming into today, shares of the customer-management software developer had gained 11.99% in the past month. In that same time, the Computer and Technology sector gained 5.89%, while the S&P 500 lost 0.3%.
CRM will be looking to display strength as it nears its next earnings release. In that report, analysts expect CRM to post earnings of $0.67 per share. This would mark year-over-year growth of 1.52%. Meanwhile, our latest consensus estimate is calling for revenue of $4.90 billion, up 22.53% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.97 per share and revenue of $20.05 billion. These totals would mark changes of -0.67% and +17.27%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CRM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. CRM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 66.65 right now. This represents a premium compared to its industry's average Forward P/E of 31.77.
Meanwhile, CRM's PEG ratio is currently 3.7. 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. CRM's industry had an average PEG ratio of 2.9 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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