salesforce-Here's Why Salesforce.com (CRM) Fell More Than Broader Market

Company Performance - Salesforce.com (CRM) closed at $354, reflecting a -1.65% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.47% [1] - Over the past month, Salesforce.com shares have increased by 7.66%, while the Computer and Technology sector has decreased by 0.19% [1] Upcoming Earnings - The upcoming earnings disclosure is anticipated, with predictions of an EPS of$ 2.60, indicating a 13.54% growth year-over-year [2] - Revenue is expected to reach $10.04 billion, representing an 8.06% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at$ 10.03 per share and revenue at $37.94 billion, showing increases of +22.02% and +8.84% respectively from the previous year [3] - Recent adjustments to analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [3] Valuation Metrics - Salesforce.com has a Forward P/E ratio of 35.88, which is a premium compared to the industry average of 31.18 [6] - The company also has a PEG ratio of 2.42, aligning with the average PEG ratio of the Computer - Software industry [7] Industry Context - The Computer - Software industry is part of the broader Computer and Technology sector, currently ranked 151 in the Zacks Industry Rank, placing it in the bottom 40% of over 250 industries [8] - Research indicates that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [8]