Salesforce.com (CRM) closed the most recent trading session at $301.73, reflecting a move of -0.06% from the previous trading day’s close. This change trailed the S&P 500’s loss of 0.04% on the day. At the same time, the Dow lost 0.03% and the tech-rich Nasdaq gained 0.03%.
Shares of the client management software developer fell 1.1% over the past month, underperforming the Computer & Technology sector’s 4.26% gain and the S&P 500’s 2.57% gain.
Salesforce.com’s upcoming earnings release will be of great interest to investors. In that report, analysts expect Salesforce.com to post earnings of $2.38 per share. This would mean an annual growth of 40.83%. Meanwhile, the Zacks Consensus Revenue Estimate projects net sales of $9.14 billion, up 10.82% year-over-year.
For the full year, Zacks Consensus Estimates forecast earnings of $9.71 per share and revenue of $37.93 billion, showing year-over-year changes of +18.13% and +8.82%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce.com. These latest adjustments often reflect the changing dynamics of short-term business patterns. With that in mind, we can consider positive revisions to estimates as a sign of optimism about the company’s business prospects.
Our research reveals that these valuation changes are directly related to near-term stock price performance. Investors can take advantage of this by using the Zacks Rank. This model takes these assessment changes into account and provides a simple, efficient grading system.
The Zacks Ranking System, which ranges from no. 1 (strong buy) to no. 5 (strong selling), has a significant track record of outperforming, confirmed by third-party audits, with stocks rated no. 1 with an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS Estimate has remained stable. Currently, Salesforce.com carries a Zacks Rank #3 (Hold).
In terms of valuation, Salesforce.com currently trades at a Forward P/E ratio of 31.08. Its industry has an average Forward P/E of 30.82, so one might conclude that Salesforce.com is trading at a premium in comparison.
Investors should also note that CRM currently has a PEG ratio of 1.78. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The computer and software industry had an average PEG ratio of 2.32 at the close of trading yesterday.
The computer software industry is part of the computer and technology sector. Currently, this industry ranks #64 on the Zacks Industry Rank, which places it in the top 26% 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 those groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock performance metrics, and more, in the upcoming trading sessions.
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Salesforce Inc. (CRM) : Free stock analysis report
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