Salesforce.com (CRM) ended the latest trading session at $265.38, moving +0.94% from the previous day’s close. The stock’s change was less than the S&P 500’s daily gain of 0.97%. Meanwhile, the Dow saw a gain of 0.58% and the tech-dominated Nasdaq gained 1.39%.
Shares of the customer management software developer rose 6.17 percent over the past month, outperforming the Computer and Technology sector’s loss of 5.36 percent and the S&P 500’s loss of 1.85 percent.
The investment community will be closely following Salesforce.com’s earnings performance in the upcoming release. The company is scheduled to announce its earnings on August 28, 2024. On that day, Salesforce.com is expected to report earnings of $2.36 per share, representing year-over-year growth of 11.32%. At the same time, our latest consensus estimate is calling for revenue of $9.23 billion, representing an increase of 7.29% from the year-ago quarter.
The Zacks Consensus Estimates for CRM for the full year are calling for earnings of $9.90 per share and revenue of $37.83 billion. These results would represent changes of +20.44% and +8.53%, respectively, from the prior year.
Investors should also pay attention to recent changes in analyst estimates for Salesforce.com. Such recent changes usually indicate a changing landscape in near-term business trends. Therefore, positive changes in estimates suggest analyst optimism about the company’s business and profitability.
Our research has shown that these estimate changes are directly correlated with near-term stock price movements. To capitalize on this, we have developed the Zacks Rank, an exclusive model that takes these estimate changes into account and provides an operating rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable track record backed by third-party audits. Stocks ranked #1 have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share remained stable. Salesforce.com currently has a Zacks Rank #4 (Sell).
In terms of valuation, Salesforce.com is currently trading at a P/E ratio of 26.55, which represents a discount to the industry’s average P/E ratio of 30.61.
Meanwhile, CRM’s PEG ratio currently stands at 1.74. The PEG ratio is similar to the commonly used P/E ratio, but also takes into account the company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Computer and Software industry was 2.32.
The Computer Software industry is part of the Computer and Technology sector. Currently, this industry has a Zacks Industry Rank of 98, putting it in the top 39% 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% of industries outperform the bottom half by a factor of 2 to 1.
Remember to use Zacks.com to track these and other metrics on stock movement during the coming trading sessions.
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Salesforce Inc. (CRM): Free Stock Analysis Report
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