Salesforce (CRM) closed at $181.22 in the latest trading session, marking a +2.04% move from the prior day. This move outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.36%.
The customer-management software developer's stock has dropped by 8.61% in the past month, falling short of the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
Market participants will be closely following the financial results of Salesforce in its upcoming release. On that day, Salesforce is projected to report earnings of $3.12 per share, which would represent year-over-year growth of 20.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.06 billion, up 12.51% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $13.15 per share and a revenue of $46.05 billion, demonstrating changes of +5.03% and +10.89%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Salesforce presently features a Zacks Rank of #3 (Hold).
Investors should also note Salesforce's current valuation metrics, including its Forward P/E ratio of 13.51. This expresses a discount compared to the average Forward P/E of 18.83 of its industry.
Investors should also note that CRM has a PEG ratio of 0.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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Salesforce, Inc. (CRM): Free Stock Analysis Report
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