Salesforce.com (CRM) Falls More Steeply Than Broader Market: What Investors Need to Know

Salesforce.com (CRM) closed the most recent trading day at $232.68, moving -3.26% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.25% for the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.3%.

Heading into today, shares of the customer-management software developer had lost 6.8% over the past month, lagging the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 2.71%.

Market participants will be closely following the financial results of Salesforce.com in its upcoming release. The company plans to announce its earnings on September 3, 2025. The company is expected to report EPS of $2.77, up 8.2% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.13 billion, reflecting a 8.66% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.3 per share and revenue of $41.15 billion. These totals would mark changes of +10.78% and +8.58%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Salesforcecom. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Salesforce.com is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 21.29 right now. This represents a discount compared to its industry average Forward P/E of 24.08.

We can additionally observe that CRM currently boasts a PEG ratio of 1.65. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.15.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.

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

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