Benzinga - by Zacks, Benzinga Contributor.
The latest trading session saw Salesforce.com (NYSE: CRM) ending at $275.74, denoting a +0.53% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.35%.
The customer-management software developer's stock has dropped by 8.93% in the past month, falling short of the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2%.
The upcoming earnings release of Salesforce.com will be of great interest to investors. The company is predicted to post an EPS of $2.38, indicating a 40.83% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.14 billion, up 10.82% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.71 per share and revenue of $37.93 billion. These totals would mark changes of +18.13% and +8.82%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Salesforce.com boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 28.24. This indicates a discount in contrast to its industry's Forward P/E of 28.54.
It is also worth noting that CRM currently has a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 2.32 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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