The Chaikin Power Gauge RatingTM for CRM is very bearish due to very poor financial metrics and very negative expert opinions. The rating in this stock report also reflects bullish price/volume activity.
CRM’s financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.
Financial Metrics Rating – Very Bearish
CRM’s financial metrics are very poor. The company may be overvalued and has relatively low revenue per share. The rank is based on a low long term debt to equity ratio, high price to book value ratio, low return on equity, high price to sales ratio and relatively low cash flow.
Earnings Performance Rating – Neutral
CRM’s earnings performance has been neutral. The company has a history of strong earnings growth and experienced relatively poor earnings growth in the past 12 months. The rank is based on high earnings growth over the past 3-5 years, better than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Bullish
Price and volume activity for CRM is bullish. CRM is in an accelerating price trend compared to 4 months ago and is trading on higher volume than its 90 day average volume. The rank for CRM is based on its relative weakness versus the market, a negative Chaikin price trend, a positive Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Very Bearish
Expert opinions about CRM are very negative. Short interest in CRM is high and CRM has been under-performing the Computer Software-Services industry over the past 13 weeks. The rank for CRM is based on analysts revising earnings estimates downward, a high short interest ratio, insiders purchasing stock, optimistic analyst opinions and relative weakness of the stock versus the Computer Software-Services industry group.
