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

Salesforce.com (CRM) closed the most recent trading day at $210.26, moving -0.05% from the previous trading session. This move lagged the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 2.7%.

Coming into today, shares of the customer-management software developer had gained 5.69% in the past month. In that same time, the Computer and Technology sector gained 6.8%, while the S&P 500 gained 1.07%.

Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be May 31, 2023. On that day, Salesforce.com is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 64.29%. Meanwhile, our latest consensus estimate is calling for revenue of $8.17 billion, up 10.24% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.11 per share and revenue of $34.62 billion. These totals would mark changes of +35.69% and +10.43%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Salesforce.com is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 29.59 right now. This valuation marks a premium compared to its industry's average Forward P/E of 25.98.

Investors should also note that CRM has a PEG ratio of 1.77 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. The Computer - Software was holding an average PEG ratio of 2.19 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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Salesforce Inc. (CRM) : Free Stock Analysis Report

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Zacks Investment Research