Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Salesforce.com (CRM) closed at $155.60, marking a -1.1% move from the previous day. This change lagged the S&P 500's 0.58% loss on the day. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the customer-management software developer had lost 15.52% over the past month. This has lagged the Computer and Technology sector's loss of 12.19% and the S&P 500's loss of 10.53% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. This is expected to be May 31, 2022. The company is expected to report EPS of $0.93, down 23.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.37 billion, up 23.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.63 per share and revenue of $31.57 billion, which would represent changes of -3.14% and +19.18%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.83% lower. Salesforce.com is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 33.95 right now. This represents a premium compared to its industry's average Forward P/E of 27.95.
Also, we should mention that CRM has a PEG ratio of 2.03. 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 Computer - Software was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
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