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

Salesforce.com (CRM) closed the most recent trading day at $153.35, moving +0.73% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the customer-management software developer had lost 4.7% in the past month. In that same time, the Computer and Technology sector gained 4.69%, while the S&P 500 gained 6.23%.

Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be November 30, 2022. In that report, analysts expect Salesforce.com to post earnings of $1.21 per share. This would mark a year-over-year decline of 4.72%. Meanwhile, our latest consensus estimate is calling for revenue of $7.81 billion, up 13.84% from the prior-year quarter.

CRM's full-year Zacks Consensus Estimates are calling for earnings of $4.73 per share and revenue of $31.03 billion. These results would represent year-over-year changes of -1.05% and +17.13%, respectively.

It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 sporting a Zacks Rank of #3 (Hold).

Investors should also note Salesforce.com's current valuation metrics, including its Forward P/E ratio of 32.21. This represents a premium compared to its industry's average Forward P/E of 25.3.

Investors should also note that CRM has a PEG ratio of 1.92 right now. 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. CRM's industry had an average PEG ratio of 2.19 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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Salesforce Inc. (CRM) : Free Stock Analysis Report

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