In the latest trading session, Salesforce (CRM) closed at $193.26, marking a -2.13% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.54%.
Shares of the customer-management software developer witnessed a gain of 17.85% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.41%, and the S&P 500's gain of 2.13%.
The investment community will be closely monitoring the performance of Salesforce in its forthcoming earnings report. The company is scheduled to release its earnings on August 26, 2026. It is anticipated that the company will report an EPS of $3.27, marking a 12.37% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $11.3 billion, up 10.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.16 per share and revenue of $46.09 billion, which would represent changes of +13.1% and +10.99%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% lower. Right now, Salesforce possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Salesforce has a Forward P/E ratio of 13.95 right now. Its industry sports an average Forward P/E of 21.01, so one might conclude that Salesforce is trading at a discount comparatively.
Meanwhile, CRM's PEG ratio is currently 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.14.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Salesforce, Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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