/shutterstock_611605280.jpg)
California-based Salesforce, Inc. (CRM) leads the software industry with a market cap of $263.6 billion, offering a wide range of Customer Relationship Management (CRM) solutions. Its comprehensive suite covers sales, service, marketing, commerce, and analytics, serving diverse industries globally.
Shares of the cloud-based software giant have slightly underperformed the broader market over the past 52 weeks. CRM has gained 24.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.4%. In 2024, shares of CRM are up 2%, trailing behind SPX's 11.4% gains on a YTD basis.
Zooming in further, CRM is lagging behind the North American Tech-Software iShares ETF's (IGV) 27.2% gains over the past 52 weeks.
Salesforce's performance has been volatile due to sluggish demand for its products, cautious revenue guidance, recent layoffs following a significant purge in January, and broader market dynamics affecting the tech sector. However, after Salesforce revealed its Q4 earnings results on Feb. 28, which outperformed expectations on both revenue and earnings, the company experienced a 3% surge in its shares during the following trading session.
In addition, the stock reaped the rewards of the optimistic market sentiment surging nearly 3.9% on May 15, following the release of the inflation report, which indicated a lesser-than-expected increase in consumer prices, easing worries regarding imminent interest rate hikes.
For the current fiscal year, ending in January 2025, analysts expect CRM's EPS to grow by 22.9% year over year to $7.45. The company's earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
The consensus rating among the 40 analysts covering the stock is a “Moderate Buy.” That’s based on 25 “Strong Buy” ratings, two “Moderate Buys,” 12 “Holds,” and one “Strong Sell.”
The configuration for the stock has remained consistent over the past months.
On May 24, RBC Capital reaffirmed its “Outperform” rating and price target of $350 for Salesforce shares, expressing confidence in the company's artificial intelligence (AI) advancements, long-term growth strategies, and agility in response to market challenges. This new target suggests a modest 27.8% upside potential from the current price levels.
The mean price target of $327.31 represents a premium of 20.2% to CRM's current levels. The Street-high price target of $380, implying a potential upside of 39.6% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
