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Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know

Salesforce.com (CRM) closed the most recent trading day at $193.84, moving -2% from the previous trading session. This change lagged the S&P 500's daily loss of 1.16%. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 7.95%.

Coming into today, shares of the customer-management software developer had gained 0.66% in the past month. In that same time, the Computer and Technology sector lost 0.03%, while the S&P 500 gained 1.53%.

Salesforce.com will be looking to display strength as it nears its next earnings release. In that report, analysts expect Salesforce.com to post earnings of $1.61 per share. This would mark year-over-year growth of 64.29%. Our most recent consensus estimate is calling for quarterly revenue of $8.17 billion, up 10.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.11 per share and revenue of $34.62 billion. These totals would mark changes of +35.69% and +10.43%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Salesforce.com currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 27.82. This valuation marks a premium compared to its industry's average Forward P/E of 27.54.

Investors should also note that CRM has a PEG ratio of 1.66 right now. 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. The Computer - Software was holding an average PEG ratio of 2.16 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% 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.

To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.

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Salesforce Inc. (CRM) : Free Stock Analysis Report

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