Salesforce.com (CRM) closed the most recent trading day at $289.17, moving +0.12% from the previous trading session. This move lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw a downswing of 0.64%, while the tech-heavy Nasdaq appreciated by 1.61%.
Shares of the customer-management software developer witnessed a gain of 13.46% over the previous month, beating the performance of the Computer and Technology sector with its gain of 11.93% and the S&P 500's gain of 9.07%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company's earnings report is set to go public on May 28, 2025. The company's earnings per share (EPS) are projected to be $2.54, reflecting a 4.1% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.74 billion, up 6.61% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.11 per share and revenue of $40.75 billion, which would represent changes of +8.92% and +7.53%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Salesforce.com presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 25.99. This signifies a discount in comparison to the average Forward P/E of 27.77 for its industry.
It's also important to note that CRM currently trades at a PEG ratio of 2.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.37.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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