Salesforce.com (CRM) Exceeds Market Returns: Some Facts to Consider

Salesforce.com (CRM) ended the recent trading session at $323.54, demonstrating a +1.4% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.12% gain on the day. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, lost 0.23%.Heading into today, shares of the customer-management software developer had lost 10.68% over the past month, lagging the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45% in that time.The upcoming earnings release of Salesforce.com will be of great interest to investors. On that day, Salesforce.com is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 13.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.04 billion, up 8.06% from the year-ago period.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.03 per share and a revenue of $37.94 billion, indicating changes of +22.02% and +8.84%, respectively, from the former year.It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Salesforce.com is currently sporting a Zacks Rank of #3 (Hold).Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 31.81. This represents a premium compared to its industry's average Forward P/E of 29.35.We can additionally observe that CRM currently boasts a PEG ratio of 2.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 2.28 as of yesterday's close.The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 37% of over 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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