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Salesforce.com (CRM) Outperforms Broader Market: What You Need to Know

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Salesforce.com (CRM - Free Report) ended the recent trading session at $254.74, demonstrating a +1.83% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.53%.

Prior to today's trading, shares of the customer-management software developer had lost 5.53% lagged the Computer and Technology sector's gain of 2.37% and the S&P 500's gain of 1.52%.

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. In that report, analysts expect Salesforce.com to post earnings of $2.77 per share. This would mark year-over-year growth of 8.2%. Alongside, our most recent consensus estimate is anticipating revenue of $10.13 billion, indicating a 8.66% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $11.3 per share and a revenue of $41.17 billion, demonstrating changes of +10.78% and +8.64%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Salesforce.com holds a Zacks Rank of #3 (Hold).

In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 22.15. This valuation marks a discount compared to its industry average Forward P/E of 26.33.

Meanwhile, CRM's PEG ratio is currently 1.72. 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. The Computer - Software industry currently had an average PEG ratio of 1.93 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 49, this industry ranks in the top 20% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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