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Salesforce.com (CRM) Stock Drops Despite Market Gains: Important Facts to Note

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Salesforce.com (CRM - Free Report) ended the recent trading session at $228.15, demonstrating a -2.55% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.82%.

Shares of the customer-management software developer have depreciated by 7.92% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.07%, and the S&P 500's loss of 0.31%.

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 December 3, 2025. The company is forecasted to report an EPS of $2.85, showcasing a 18.26% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.26 billion, up 8.68% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $11.36 per share and revenue of $41.21 billion, which would represent changes of +11.37% and +8.76%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Salesforce.com presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 20.62. For comparison, its industry has an average Forward P/E of 22.24, which means Salesforce.com is trading at a discount to the group.

It is also worth noting that CRM currently has a PEG ratio of 1.39. 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. The Computer - Software was holding an average PEG ratio of 1.76 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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