Salesforce.com (crm) Falls More Steeply Than Broader Market: What Investors Need To Know

Salesforce.com (CRM) closed the latest trading day at $318.43, indicating a -1.88% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.47%.

The the stock of customer-management software developer has fallen by 2.43% in the past month, lagging the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.

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 February 26, 2025. In that report, analysts expect Salesforce.com to post earnings of $2.60 per share. This would mark year-over-year growth of 13.54%. At the same time, our most recent consensus estimate is projecting a revenue of $10.04 billion, reflecting an 8.06% rise from the equivalent quarter last year.

It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Salesforce.com is currently a Zacks Rank #2 (Buy).

Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 29.1. This signifies a discount in comparison to the average Forward P/E of 29.52 for its industry.

Investors should also note that CRM has a PEG ratio of 1.98 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 135, this industry ranks in the bottom 47% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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