Salesforce (CRM) closed at $170.77 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The stock of customer-management software developer has risen by 13.77% in the past month, leading the Computer and Technology sector's loss of 3.73% and the S&P 500's gain of 0.32%.
The investment community will be closely monitoring the performance of Salesforce in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.27, reflecting a 12.37% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.3 billion, reflecting a 10.44% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.12 per share and a revenue of $46.09 billion, indicating changes of +12.78% and +10.99%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Salesforce is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Salesforce is holding a Forward P/E ratio of 12.23. This denotes a discount relative to the industry average Forward P/E of 20.37.
We can also see that CRM currently has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.11 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons 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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Salesforce, Inc. (CRM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).