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Salesforce.com (CRM) closed at $213.89 in the latest trading session, marking a -1.21% move from the prior day. This move lagged the S&P 500's daily loss of 1.04%.
Heading into today, shares of the customer-management software developer had lost 3.54% over the past month, lagging the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 3.83% in that time.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which is expected to be May 27, 2021. On that day, CRM is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 25.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.88 billion, up 20.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.44 per share and revenue of $25.7 billion, which would represent changes of -30.08% and +20.94%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CRM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant. CRM currently has a Zacks Rank of #3 (Hold).
Investors should also note CRM's current valuation metrics, including its Forward P/E ratio of 62.99. For comparison, its industry has an average Forward P/E of 35.72, which means CRM is trading at a premium to the group.
It is also worth noting that CRM currently has a PEG ratio of 3.42. 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 industry currently had an average PEG ratio of 2.38 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 168, which puts it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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