We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Salesforce.com (CRM) Falls More Steeply Than Broader Market: What Investors Need to Know
Read MoreHide Full Article
Salesforce.com (CRM - Free Report) closed the latest trading day at $318.43, indicating a -1.88% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.47%.
The the stock of customer-management software developer has fallen by 2.43% in the past month, lagging the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. In that report, analysts expect Salesforce.com to post earnings of $2.60 per share. This would mark year-over-year growth of 13.54%. At the same time, our most recent consensus estimate is projecting a revenue of $10.04 billion, reflecting an 8.06% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 remained stagnant. Salesforce.com is currently a Zacks Rank #2 (Buy).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 29.1. This signifies a discount in comparison to the average Forward P/E of 29.52 for its industry.
Investors should also note that CRM has a PEG ratio of 1.98 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 135, this industry ranks in the bottom 47% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Salesforce.com (CRM) Falls More Steeply Than Broader Market: What Investors Need to Know
Salesforce.com (CRM - Free Report) closed the latest trading day at $318.43, indicating a -1.88% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.47%.
The the stock of customer-management software developer has fallen by 2.43% in the past month, lagging the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. In that report, analysts expect Salesforce.com to post earnings of $2.60 per share. This would mark year-over-year growth of 13.54%. At the same time, our most recent consensus estimate is projecting a revenue of $10.04 billion, reflecting an 8.06% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 remained stagnant. Salesforce.com is currently a Zacks Rank #2 (Buy).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 29.1. This signifies a discount in comparison to the average Forward P/E of 29.52 for its industry.
Investors should also note that CRM has a PEG ratio of 1.98 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 135, this industry ranks in the bottom 47% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.