Salesforce.com (CRM) closed at $142.13 in the latest trading session, marking a +1.72% move from the prior day. This change outpaced the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the customer-management software developer had lost 11.7% over the past month, lagging the Computer and Technology sector's loss of 5.18% and the S&P 500's loss of 5.58% in that time.
CRM will be looking to display strength as it nears its next earnings release, which is expected to be August 22, 2019. On that day, CRM is projected to report earnings of $0.47 per share, which would represent a year-over-year decline of 33.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.95 billion, up 20.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.65 per share and revenue of $16.59 billion. These totals would mark changes of -3.64% and +24.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CRM. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CRM is currently a Zacks Rank #3 (Hold).
Investors should also note CRM's current valuation metrics, including its Forward P/E ratio of 52.7. This represents a premium compared to its industry's average Forward P/E of 29.08.
Meanwhile, CRM's PEG ratio is currently 2.43. 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. The Computer - Software industry currently had an average PEG ratio of 1.97 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 87, which puts it in the top 34% 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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