In the latest trading session, Salesforce.com (CRM) closed at $237.98, marking a +1.35% move from the previous day. The stock outpaced the S&P 500’s daily gain of 1.09%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 1.23%.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. In that report, analysts expect CRM to post earnings of $0.75 per share. This would mark year-over-year growth of 13.64%. Meanwhile, our latest consensus estimate is calling for revenue of $5.68 billion, up 17.02% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for CRM. Recent revisions tend to reflect the latest 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CRM is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, CRM is holding a Forward P/E ratio of 69.28. For comparison, its industry has an average Forward P/E of 37.9, which means CRM is trading at a premium to the group.
It is also worth noting that CRM currently has a PEG ratio of 4.95. 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. CRM’s industry had an average PEG ratio of 2.96 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 173, which puts it in the bottom 33% 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.
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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