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

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Salesforce.com (CRM - Free Report) ended the recent trading session at $237.03, demonstrating a -2.72% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.84%.

Coming into today, shares of the customer-management software developer had gained 0.24% in the past month. In that same time, the Computer and Technology sector gained 1.64%, while the S&P 500 gained 1.48%.

Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on December 3, 2025. It is anticipated that the company will report an EPS of $2.85, marking a 18.26% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $10.26 billion, indicating a 8.68% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.36 per share and a revenue of $41.21 billion, signifying shifts of +11.37% and +8.76%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforcecom. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 0.01% higher. Salesforce.com is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Salesforce.com is presently being traded at a Forward P/E ratio of 21.46. Its industry sports an average Forward P/E of 23.03, so one might conclude that Salesforce.com is trading at a discount comparatively.

Investors should also note that CRM has a PEG ratio of 1.54 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.85.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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