Salesforce.com (CRM) Declines More Than Market: Some Information for Investors

In the latest close session, Salesforce.com (CRM) was down 1.06% at $267.39. This move lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.38%. Coming into today, shares of the customer-management software developer had lost 0.89% in the past month. In that same time, the Computer and Technology sector gained 4.85%, while the S&P 500 gained 3.64%. Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company is expected to report EPS of $2.77, up 8.2% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.13 billion, up 8.66% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $11.3 per share and revenue of $41.17 billion, which would represent changes of +10.78% and +8.64%, respectively, from the prior year. Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Salesforce.com is holding a Zacks Rank of #3 (Hold) right now. Looking at its valuation, Salesforce.com is holding a Forward P/E ratio of 23.92. Its industry sports an average Forward P/E of 26.68, so one might conclude that Salesforce.com is trading at a discount comparatively. Also, we should mention that CRM has a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.33. The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries. The Zacks Industry Rank is ordered 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. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks