Salesforce.com (CRM) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - Salesforce.com (CRM) closed at $258.59, reflecting a -1.57% change from the previous trading day's closing, underperforming the S&P 500's daily gain of 0.08% [1] - The stock has increased by 2.18% over the past month, outperforming the Computer and Technology sector's decline of 4.62% and the S&P 500's loss of 0.21% [1] - The upcoming earnings report is expected to show an EPS of $2.36, representing an 11.32% increase year-over-year, with projected revenue of $9.23 billion, up 7.3% from the previous year [1] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $9.90 per share and revenue at $37.83 billion, indicating increases of +20.44% and +8.54% respectively from the prior year [2] - Recent changes to analyst estimates for Salesforce.com are important as they reflect the evolving business landscape, with positive changes indicating analyst optimism [2] Valuation Metrics - Salesforce.com has a Forward P/E ratio of 26.53, which is a discount compared to the industry's average Forward P/E of 29.87 [3] - The company has a PEG ratio of 1.74, which is lower than the Computer - Software industry's average PEG ratio of 2.41 [3] Industry Context - The Computer - Software industry is part of the broader Computer and Technology sector, currently ranked 158 in the Zacks Industry Rank, placing it in the bottom 38% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [4]