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In the latest trading session, Salesforce.com (CRM) closed at $236.72, marking a +0.01% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the customer-management software developer had gained 9.48% over the past month. This has outpaced the Computer and Technology sector's gain of 7.76% and the S&P 500's gain of 2.37% in that time.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. This is expected to be February 25, 2021. In that report, analysts expect CRM to post earnings of $0.75 per share. This would mark year-over-year growth of 13.64%. Our most recent consensus estimate is calling for quarterly revenue of $5.68 billion, up 17.01% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's 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 remained stagnant. CRM currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CRM currently has a Forward P/E ratio of 70.42. For comparison, its industry has an average Forward P/E of 40.03, which means CRM is trading at a premium to the group.
Also, we should mention that CRM has a PEG ratio of 5.03. 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. Computer - Software stocks are, on average, holding a PEG ratio of 3 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 18% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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salesforce.com, inc. (CRM) : Free Stock Analysis Report
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