In the latest close session, Salesforce (CRM) was down 4.07% at $180.71. This change lagged the S&P 500's daily gain of 1.66%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 2.78%.

Shares of the customer-management software developer have appreciated by 15.41% over the course of the past month, outperforming the Computer and Technology sector's loss of 7.65%, and the S&P 500's loss of 1.49%.

Analysts and investors alike will be keeping a close eye on the performance of Salesforce in its upcoming earnings disclosure. The company is expected to report EPS of $3.27, up 12.37% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $11.3 billion, showing a 10.44% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.12 per share and a revenue of $46.09 billion, indicating changes of +12.78% and +10.99%, respectively, from the former year.

Any recent changes to analyst estimates for Salesforce should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.07% fall in the Zacks Consensus EPS estimate. At present, Salesforce boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Salesforce has a Forward P/E ratio of 13.34 right now. This represents a discount compared to its industry average Forward P/E of 20.68.

Meanwhile, CRM's PEG ratio is currently 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CRM's industry had an average PEG ratio of 1.18 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

See Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Salesforce, Inc. (CRM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research