Salesforce.com’s Recent Performance and Outlook
Salesforce.com (CRM) closed the most recent trading day at $263.97, showing a decline of 2.57% compared to the previous session. This performance fell below that of the S&P 500, which saw a modest gain of 0.28% for the day. Meanwhile, the Dow Jones Industrial Average rose by 0.43%, and the Nasdaq Composite, known for its tech-heavy composition, added 0.09%.
Over the past month, Salesforce.com has experienced a 1.88% increase in its stock price. However, this growth lags behind the broader Computer and Technology sector, which gained 6.2% during the same period, as well as the S&P 500’s 4.37% rise.
Investors and analysts are closely watching Salesforce.com as it prepares to release its upcoming earnings report. Analysts anticipate the company will report earnings of $2.77 per share, representing an 8.2% year-over-year increase. Revenue is expected to reach $10.13 billion, up 8.66% from the same quarter last year.
Looking ahead for the full year, the Zacks Consensus Estimates suggest that Salesforce.com will report earnings of $11.30 per share and revenue of $41.17 billion. These figures would represent increases of 10.78% and 8.64%, respectively, compared to the previous year.
Recent changes in analyst estimates for Salesforce.com should not be overlooked by investors. These revisions often reflect the latest short-term business trends, which can change rapidly. Positive revisions typically signal a more favorable outlook on the company’s financial health and profitability.
Research indicates that these estimate changes are closely tied to future stock price performance. To capitalize on this relationship, the Zacks Rank system was developed. This system evaluates estimate changes and provides a clear, actionable rating model that helps investors make informed decisions.
The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell). Stocks ranked #1 have historically delivered an average annual return of +25% since 1988, according to external audits. In the past 30 days, the consensus EPS projection for Salesforce.com has slightly decreased by 0.04%. As of now, the company holds a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 23.98. This is considered a discount compared to the industry average Forward P/E of 27.42. Additionally, the company trades at a PEG ratio of 1.86, which factors in projected earnings growth. The Computer – Software industry had an average PEG ratio of 2.4 as of the last trading session.
The Computer – Software industry is part of the broader Computer and Technology sector. This industry currently holds a Zacks Industry Rank of 36, placing it in the top 15% of all 250+ industries. The Zacks Industry Rank measures the strength of specific industry groups by calculating the average Zacks Rank of the stocks within them. Research shows that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1.
Investors should continue to monitor key metrics affecting Salesforce.com through reliable sources to stay informed about its performance in the coming trading sessions.
