We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Salesforce.com (CRM) Exceeds Market Returns: Some Facts to Consider
Read MoreHide Full Article
The most recent trading session ended with Salesforce.com (CRM - Free Report) standing at $326.90, reflecting a +0.61% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Heading into today, shares of the customer-management software developer had lost 6.85% over the past month, lagging the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company is expected to report EPS of $2.61, up 13.97% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.04 billion, reflecting an 8.06% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.03 per share and revenue of $37.94 billion. These totals would mark changes of +22.02% and +8.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 0.05% downward. Right now, Salesforce.com possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 32.39. This indicates a premium in contrast to its industry's Forward P/E of 29.73.
Meanwhile, CRM's PEG ratio is currently 2.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.28.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Salesforce.com (CRM) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Salesforce.com (CRM - Free Report) standing at $326.90, reflecting a +0.61% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Heading into today, shares of the customer-management software developer had lost 6.85% over the past month, lagging the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company is expected to report EPS of $2.61, up 13.97% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.04 billion, reflecting an 8.06% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.03 per share and revenue of $37.94 billion. These totals would mark changes of +22.02% and +8.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 0.05% downward. Right now, Salesforce.com possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 32.39. This indicates a premium in contrast to its industry's Forward P/E of 29.73.
Meanwhile, CRM's PEG ratio is currently 2.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.28.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.