Here's Why Salesforce.com (CRM) Gained But Lagged the Market Today

Salesforce.com (CRM) closed the latest trading day at $326.84, indicating a +0.7% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.88%. Meanwhile, the Dow gained 1.24%, and the Nasdaq, a tech-heavy index, added 0.65%.Heading into today, shares of the customer-management software developer had lost 5.35% over the past month, lagging the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17% in that time.Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. On that day, Salesforce.com is projected to report earnings of $2.60 per share, which would represent year-over-year growth of 13.54%. Simultaneously, our latest consensus estimate expects the revenue to be $10.04 billion, showing an 8.06% escalation compared to the year-ago quarter.For the full year, the Zacks Consensus Estimates are projecting earnings of $10.03 per share and revenue of $37.94 billion, which would represent changes of +22.02% and +8.84%, respectively, from the prior year.Investors should also note any recent changes to analyst estimates for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Salesforce.com presently features a Zacks Rank of #3 (Hold).In terms of valuation, Salesforce.com is presently being traded at a Forward P/E ratio of 32.35. This valuation marks a premium compared to its industry's average Forward P/E of 31.04.We can also see that CRM currently has a PEG ratio of 2.19. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.38.The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 38% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks