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Salesforce (CRM) Rises As Market Takes a Dip: Key Facts

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In the latest trading session, Salesforce (CRM - Free Report) closed at $196.48, marking a +2.88% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.69%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw a decrease of 1.33%.

The customer-management software developer's stock has climbed by 9.89% in the past month, exceeding the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 3.96%.

The investment community will be paying close attention to the earnings performance of Salesforce in its upcoming release. The company is slated to reveal its earnings on August 26, 2026. In that report, analysts expect Salesforce to post earnings of $3.27 per share. This would mark year-over-year growth of 12.37%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.3 billion, indicating a 10.44% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $14.16 per share and a revenue of $46.09 billion, demonstrating changes of +13.1% and +10.99%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Salesforce. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Salesforce is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Salesforce is holding a Forward P/E ratio of 13.49. This denotes a discount relative to the industry average Forward P/E of 21.19.

We can additionally observe that CRM currently boasts a PEG ratio of 0.75. 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. CRM's industry had an average PEG ratio of 1.01 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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