In the latest close session, Salesforce.com (CRM) was up +1.15% at $244.50. This move outpaced the S&P 500's daily gain of 0.21%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq lost 0.25%.
Shares of the customer-management software developer witnessed a loss of 2.83% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.68%, and the S&P 500's gain of 4.36%.
The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. The company is scheduled to release its earnings on December 3, 2025. The company is expected to report EPS of $2.85, up 18.26% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $10.26 billion, indicating a 8.68% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.36 per share and revenue of $41.21 billion, indicating changes of +11.37% and +8.76%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Salesforce.com is currently a Zacks Rank #3 (Hold).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 21.29. This valuation marks a discount compared to its industry average Forward P/E of 24.64.
Meanwhile, CRM's PEG ratio is currently 1.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 1.87 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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Salesforce Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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