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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know

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Salesforce.com (CRM - Free Report) closed the latest trading day at $339.11, indicating a -0.85% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.27%.

Shares of the customer-management software developer witnessed a gain of 17.75% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.27% and the S&P 500's gain of 2.1%.

The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. The company is scheduled to release its earnings on December 3, 2024. The company is predicted to post an EPS of $2.43, indicating a 15.17% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.34 billion, showing a 7.1% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and revenue of $37.86 billion, which would represent changes of +22.63% and +8.6%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Salesforce.com is carrying a Zacks Rank of #2 (Buy).

In the context of valuation, Salesforce.com is at present trading with a Forward P/E ratio of 33.93. For comparison, its industry has an average Forward P/E of 31.32, which means Salesforce.com is trading at a premium to the group.

It's also important to note that CRM currently trades at a PEG ratio of 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CRM's industry had an average PEG ratio of 2.53 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, 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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