Salesforce (CRM) closed at $170.77 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500’s daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The stock of customer-management software developer has risen by 13.77% in the past month, leading the Computer and Technology sector’s loss of 3.73% and the S&P 500’s gain of 0.32%.
The investment community will be closely monitoring the performance of Salesforce in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $3.27, reflecting a 12.37% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.3 billion, reflecting a 10.44% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.12 per share and a revenue of $46.09 billion, indicating changes of +12.78% and +10.99%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Salesforce is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Salesforce is holding a Forward P/E ratio of 12.23. This denotes a discount relative to the industry average Forward P/E of 20.37.
We can also see that CRM currently has a PEG ratio of 0.68. 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 average PEG ratio for the Internet – Software industry stood at 1.11 at the close of the market yesterday.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.
