Salesforce.com (CRM) Gains As Market Dips: What You Should Know

Salesforce.com (CRM) closed at $163.67 in the latest trading session, marking a +0.26% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.92%, while the tech-heavy Nasdaq added 0.51%.

Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. In that report, analysts expect CRM to post earnings of $0.69 per share. This would mark a year-over-year decline of 25.81%. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 29.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $20.81 billion, which would represent changes of +3.68% and +21.7%, respectively, from the prior year.

Any recent changes to analyst estimates for CRM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. CRM is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, CRM is holding a Forward P/E ratio of 52.64. For comparison, its industry has an average Forward P/E of 29.62, which means CRM is trading at a premium to the group.

It is also worth noting that CRM currently has a PEG ratio of 2.92. 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 Computer - Software industry currently had an average PEG ratio of 2.66 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.

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