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Salesforce.com (CRM) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Salesforce.com (CRM - Free Report) reached $287.32, with a -1.37% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.3%.

Shares of the customer-management software developer have appreciated by 7.12% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.35% and outperforming the S&P 500's gain of 5.78%.

The upcoming earnings release of Salesforce.com will be of great interest to investors. The company's earnings report is expected on February 28, 2024. The company's earnings per share (EPS) are projected to be $2.26, reflecting a 34.52% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.21 billion, up 9.87% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce.com. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Salesforce.com is currently a Zacks Rank #3 (Hold).

In the context of valuation, Salesforce.com is at present trading with a Forward P/E ratio of 30.63. This signifies a discount in comparison to the average Forward P/E of 32.6 for its industry.

We can also see that CRM currently has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRM's industry had an average PEG ratio of 2.5 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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