Latest news with #Salesforce.com
Yahoo
4 days ago
- Business
- Yahoo
Salesforce Inc. (CRM) is Attracting Investor Attention: Here is What You Should Know
(CRM) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this customer-management software developer have returned -3.5% over the past month versus the Zacks S&P 500 composite's +6.1% change. The Zacks Computer - Software industry, to which belongs, has gained 13.2% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, is expected to post earnings of $2.73 per share, indicating a change of +6.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +4% over the last 30 days. The consensus earnings estimate of $11.14 for the current fiscal year indicates a year-over-year change of +9.2%. This estimate has changed +1.3% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $12.36 indicates a change of +11% from what is expected to report a year ago. Over the past month, the estimate has changed +0.2%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of the consensus sales estimate of $10.12 billion for the current quarter points to a year-over-year change of +8.5%. The $41.13 billion and $44.7 billion estimates for the current and next fiscal years indicate changes of +8.6% and +8.7%, respectively. reported revenues of $9.83 billion in the last reported quarter, representing a year-over-year change of +7.6%. EPS of $2.58 for the same period compares with $2.44 a year ago. Compared to the Zacks Consensus Estimate of $9.74 billion, the reported revenues represent a surprise of +0.95%. The EPS surprise was +1.57%. Over the last four quarters, surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-05-2025
- Business
- Yahoo
Salesforce.com (CRM) Tops Q1 Earnings and Revenue Estimates
(CRM) came out with quarterly earnings of $2.58 per share, beating the Zacks Consensus Estimate of $2.54 per share. This compares to earnings of $2.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.57%. A quarter ago, it was expected that this customer-management software developer would post earnings of $2.60 per share when it actually produced earnings of $2.78, delivering a surprise of 6.92%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. , which belongs to the Zacks Computer - Software industry, posted revenues of $9.83 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $9.13 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. shares have lost about 17.1% since the beginning of the year versus the S&P 500's gain of 0.7%. While has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.72 on $10.02 billion in revenues for the coming quarter and $11.12 on $40.75 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Oracle (ORCL), is yet to report results for the quarter ended May 2025. This software maker is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of +0.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Oracle's revenues are expected to be $15.54 billion, up 8.8% from the year-ago quarter. 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 Report Oracle Corporation (ORCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
28-05-2025
- Business
- The Star
Salesforce raises annual results forecast on strong cloud spending
FILE PHOTO: The company logo for is displayed on the Salesforce Tower in New York City, U.S., March 7, 2019. REUTERS/Brendan McDermid/File photo (Reuters) - Salesforce raised its revenue and adjusted profit forecast for fiscal 2026 on Wednesday, as the enterprise software provider benefits from strong cloud spending while ramping up monetization of its artificial intelligence agents. Shares of the company rose around 3% in extended trading. Cloud spending from major enterprises has remained resilient even amid global macroeconomic uncertainty over the past few months, as companies invest heavily in artificial intelligence to modernize their digital infrastructure. For Salesforce, higher cloud spending bodes well for its efforts to ramp up monetization for its AI agent platform, Agentforce, as it bets big on the rise of agentic technology to spur adoption of its software offerings. The company has been investing heavily in expanding both its Agentforce platform and its footprint across the globe in an attempt to tap into newer markets with high demand for automation and cloud services. Salesforce bought data management platform Informatica for about $8 billion on Tuesday, looking to bolster its prominent data tools and tighten management of how data is processed and deployed across its portfolio. The company's re-entry into big-ticket M&A after years on the sidelines sparks concerns about Salesforce's ability to return to double-digit growth without relying on acquisitions. The company expects fiscal 2026 revenue to be between $41 billion and $41.3 billion, compared with its prior forecast range of $40.5 billion to $40.9 billion. It raised its full-year forecast for adjusted earnings per share to a range of $11.27 to $11.33, compared to its previous forecast of $11.09 to $11.17 per share. The company reported first-quarter revenue of $9.83 billion, beating estimates of $9.75 billion, according to data compiled by LSEG. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)
Yahoo
27-05-2025
- Business
- Yahoo
Zhihu (NYSE:ZH) Is In A Strong Position To Grow Its Business
Just because a business does not make any money, does not mean that the stock will go down. For example, although software-as-a-service business lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly. So should Zhihu (NYSE:ZH) shareholders be worried about its cash burn? For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). First, we'll determine its cash runway by comparing its cash burn with its cash reserves. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. When Zhihu last reported its December 2024 balance sheet in April 2025, it had zero debt and cash worth CN¥4.9b. Looking at the last year, the company burnt through CN¥283m. That means it had a cash runway of very many years as of December 2024. Importantly, though, analysts think that Zhihu will reach cashflow breakeven before then. In that case, it may never reach the end of its cash runway. Depicted below, you can see how its cash holdings have changed over time. View our latest analysis for Zhihu We reckon the fact that Zhihu managed to shrink its cash burn by 33% over the last year is rather encouraging. But the revenue dip of 14% in the same period was a bit concerning. On balance, we'd say the company is improving over time. While the past is always worth studying, it is the future that matters most of all. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. There's no doubt Zhihu seems to be in a fairly good position, when it comes to managing its cash burn, but even if it's only hypothetical, it's always worth asking how easily it could raise more money to fund growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Many companies end up issuing new shares to fund future growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations. Since it has a market capitalisation of CN¥2.4b, Zhihu's CN¥283m in cash burn equates to about 12% of its market value. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution. It may already be apparent to you that we're relatively comfortable with the way Zhihu is burning through its cash. In particular, we think its cash runway stands out as evidence that the company is well on top of its spending. Although its falling revenue does give us reason for pause, the other metrics we discussed in this article form a positive picture overall. There's no doubt that shareholders can take a lot of heart from the fact that analysts are forecasting it will reach breakeven before too long. Taking all the factors in this report into account, we're not at all worried about its cash burn, as the business appears well capitalized to spend as needs be. While we always like to monitor cash burn for early stage companies, qualitative factors such as the CEO pay can also shed light on the situation. Click here to see free what the Zhihu CEO is paid.. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Was Jim Cramer Right About monday.com Ltd. (MNDY)?
We recently published a list of . In this article, we are going to take a look at where Ltd. (NASDAQ:MNDY) stands against other stocks that Jim Cramer in 2024, on May 15, a caller asked about Ltd. (NASDAQ:MNDY), curious about its potential and options activity. Cramer saw the company as a strong junior version of Salesforce. 'I know a lot of people feel that it's going to get a takeover bid — I can't acknowledge anything, I don't know anything about a takeover bid. I do know this: my Monday is a very good — mini You could call it maybe a junior is the way to put it. And they're very smart people. I would not bet against them.' Software engineers collaborating on a project while seated in a shared workspace. The stock outperformed as Cramer predicted, gaining 28.34% and showing solid execution in its category. Ltd. (NASDAQ:MNDY) is gaining traction as a fast-moving project management platform with strong enterprise appeal. Overall, MNDY ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of MNDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MNDY and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
