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Salesforce.com (CRM) closed the most recent trading day at $212.74, moving +0.82% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the customer-management software developer had lost 17.11% over the past month. This has lagged the Computer and Technology sector's loss of 13.86% and the S&P 500's loss of 7.87% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. The company is expected to report EPS of $0.73, down 29.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.23 billion, up 24.28% from the year-ago period.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $4.68 per share and revenue of $26.4 billion. These results would represent year-over-year changes of -4.88% and +24.2%, respectively.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Salesforce.com currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Salesforce.com is holding a Forward P/E ratio of 45.11. For comparison, its industry has an average Forward P/E of 31.97, which means Salesforce.com is trading at a premium to the group.
We can also see that CRM currently has a PEG ratio of 2.69. 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 currently had an average PEG ratio of 2.56 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 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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salesforce.com, inc. (CRM) : Free Stock Analysis Report
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