It has been about a month since the last earnings report for Salesforce.com (CRM). Shares have lost about 5.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Salesforce.com due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Salesforce.com has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Salesforce.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Salesforce.com is part of the Zacks Computer - Software industry. Over the past month, Cadence Design Systems (CDNS), a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended December 2024 more than a month ago.

Cadence reported revenues of $1.36 billion in the last reported quarter, representing a year-over-year change of +26.9%. EPS of $1.88 for the same period compares with $1.38 a year ago.

For the current quarter, Cadence is expected to post earnings of $1.49 per share, indicating a change of +27.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cadence. Also, the stock has a VGM Score of F.

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

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