Salesforce.com (CRM) ended the recent trading session at $248.29, demonstrating a +1% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.52%. On the other hand, the Dow registered a gain of 1.89%, and the technology-centric Nasdaq increased by 1.88%.
Shares of the customer-management software developer witnessed a loss of 8.17% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.05%, and the S&P 500's gain of 1.1%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. The company is slated to reveal its earnings on September 3, 2025. The company is predicted to post an EPS of $2.77, indicating a 8.2% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.13 billion, up 8.66% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.3 per share and a revenue of $41.15 billion, representing changes of +10.78% and +8.58%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 21.76. This valuation marks a discount compared to its industry average Forward P/E of 24.96.
Meanwhile, CRM's PEG ratio is currently 1.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Salesforce Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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