In the latest trading session, Salesforce.com (CRM) closed at $161.71, marking a -0.68% move from the previous day. This change lagged the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.32%.
Prior to today's trading, shares of the customer-management software developer had gained 9.92% over the past month. This has outpaced the Computer and Technology sector's gain of 5.59% and the S&P 500's gain of 3.42% in that time.
CRM will be looking to display strength as it nears its next earnings release, which is expected to be December 3, 2019. On that day, CRM is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 8.2%. Our most recent consensus estimate is calling for quarterly revenue of $4.44 billion, up 30.79% from the year-ago period.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $16.96 billion. These results would represent year-over-year changes of +3.64% and +27.72%, respectively.
It is also important to note the recent changes to analyst estimates for CRM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 1.23% higher. CRM is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 57.24 right now. Its industry sports an average Forward P/E of 31.19, so we one might conclude that CRM is trading at a premium comparatively.
Also, we should mention that CRM has a PEG ratio of 3.05. 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. CRM's industry had an average PEG ratio of 2.34 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 76, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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