Here's Why Salesforce.com (CRM) is a Strong Growth Stock

According to Zacks, Salesforce.com (CRM) is a stock to watch, holding a Zacks Rank of #3 (Hold) but possessing a VGM Score of A and a Growth Style Score of A. The company is projected to experience 9.2% year-over-year earnings growth for the current fiscal year, with the consensus estimate for fiscal 2026 increasing by $0.01 to $11.14 per share following upward revisions by two analysts in the last 60 days; CRM also has an average earnings surprise of 4.2%.

Analysis

Salesforce.com (CRM), a leading provider of on-demand Customer Relationship Management software, currently holds a Zacks Rank #3 (Hold), indicating a neutral short-term outlook according to the proprietary rating system. Despite this hold rating, CRM exhibits strong underlying growth characteristics, evidenced by a top-tier Growth Style Score of A and a VGM (Value, Growth, Momentum) Score of A. The company is projected for 9.2% year-over-year earnings growth in the current fiscal year. Further supporting a positive outlook, two analysts have revised their earnings estimates upwards for fiscal 2026 within the past 60 days, leading to a $0.01 increase in the Zacks Consensus Estimate to $11.14 per share. Additionally, Salesforce boasts an average earnings surprise of 4.2%, suggesting a consistent ability to outperform market expectations. The combination of a #3 Rank with A-grade Style Scores, particularly in Growth, suggests that while not a "Strong Buy" or "Buy" according to Zacks, the stock possesses attributes that could lead to upside potential, especially for investors prioritizing growth metrics, a view supported by the "strongly positive" sentiment score of 0.85 attributed to CRM.

Key Decisions for Investors

• Investors should note Salesforce's current Zacks #3 (Hold) rating alongside its strong 'A' grades for Growth and VGM, suggesting the stock warrants consideration, particularly for those with a growth-focused investment strategy.
• Given the forecasted 9.2% earnings growth for the current fiscal year, positive fiscal 2026 estimate revisions, and a consistent 4.2% average earnings surprise, investors might view the current neutral rating as an opportunity if they believe these growth fundamentals will persist or improve.
• It is prudent for investors to monitor for any changes in Salesforce's Zacks Rank and further earnings estimate revisions, as these are key indicators within the Zacks framework that could signal a shift in the stock's outlook and its attractiveness based on this methodology.