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The Best Tech Stocks to Buy Now On the Dip: CRM for Triple-Digit Upside?
Key Takeaways
Buy Salesforce before earnings for 100% long-term upside potential after its 50% fall?
CRM's earnings and revenue growth outlooks are strong, and it is adapting to the AI age.
CRM is at its most oversold levels since 2008/2009, while Tech looks overbought in the short run.
Investors looking for deals, value, and potentially flat-out cheap technology stocks to buy right now might want to consider Salesforce (CRM - Free Report) stock.
The business software stock is down over 50% from its 2024 peaks, while trading at a 30% discount to Tech and over 95% below its highs at 17.9X forward 12-month earnings—even though CRM has climbed ~2,300% in the past 20 years vs. Tech’s ~1,100%.
Wall Street is growing increasingly worried that the rapid rise and advancement of AI will make Salesforce’s business software offerings gradually obsolete. But Salesforce is not rolling over and letting AI slowly destroy its business; it’s adapting with AI and churning out impressive growth, poised to nearly double its revenue and 3x its earnings between 2022 and 2027.
CRM is trading at some of its most oversold RSI levels since the 2022 tech selloff and the 2008/2009 financial crisis, while the Nasdaq is trading at some of its most overbought.
Salesforce is also trying to find support at a potentially key technical range highlighted below in blue.
Of course, Salesforce might never return to its highs, which offer 100% upside from its current price. The company may indeed prove unable to navigate the AI age and all the unknowns and changes.
Still, it might be worth building a starter position in the beaten-down tech stock because, as the old saying goes, be greedy when others are fearful.
Image Source: Zacks Investment Research
Salesforce is set to announce its first-quarter results on Wednesday, May 27. Some might want to wait until after its release before they buy, or nibble now in case CRM impresses.
Best Tech Stocks to Buy Now and in June?
Salesforce’s growing portfolio supports sales, marketing, commerce, customer and client engagement, analytics, app development, and much more.
The business software and SaaS vanguard’s days of massive YoY growth are over as it closes in on $50 billion in yearly revenue. This backdrop, and the end of ultra-low interest rates, forced CRM to turn its attention to steady profitable growth, marked by strong earnings expansion.
Salesforce has transformed into a mature, steady growth firm that went from losing money as recently as 2016 to posting strong GAAP and adjusted earnings. It also started paying dividends in 2024, joining the likes of Meta and Alphabet, while buying back stock.
Image Source: Zacks Investment Research
None of these efforts matter to Wall Street, however, if AI eats away at its business and the broader SaaS industry.
Salesforce launched its Agentforce AI tool in October 2024. Since then, it’s incorporated and built out its agentic AI offerings.
Agentforce reached $800 million in annual recurring revenue last year (period ended January 31), up 169% YoY. “We’ve rebuilt Salesforce to become the operating system for the Agentic Enterprise, bringing humans and agents together on one trusted platform,” CEO Marc Benioff said in prepared Q4 remarks in late February.
The business software power grew its revenue by 10% last year as part of 10% average sales growth in the trailing three years.
Image Source: Zacks Investment Research
Salesforce said it is on its way to $63 billion in revenue in its FY30, boosted by Agentic AI. The company is projected to grow its revenue by 11% this year and 9% next year to $50.32 billion, up from $41.52 billion last year.
CRM expanded its adjusted and its GAAP earnings by ~23% last year. Its earnings estimates have climbed recently, with it projected to expand its adjusted EPS by 5% this year and 12% next year. Salesforce is then expected to ramp up its bottom-line growth by an even more impressive clip (see chart above).
Image Source: Zacks Investment Research
The stock is down 20% over the past five years while Tech has surged 115%, weighed down by its 50% fall from its 2024 highs. Salesforce’s average Zacks price target marks 50% upside from its current level, and it would have to climb ~100% to return to its peaks.
CRM stock has climbed ~2,300% in the past 20 years to blow away Tech’s ~1,100% and Microsoft's (MSFT - Free Report) ~1,750%. Despite this long-term outperformance, Salesforce trades at a 30% discount to Tech, over 95% below its highs, and 20% below Microsoft at 17.9X forward 12-month earnings
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The Best Tech Stocks to Buy Now On the Dip: CRM for Triple-Digit Upside?
Key Takeaways
Investors looking for deals, value, and potentially flat-out cheap technology stocks to buy right now might want to consider Salesforce (CRM - Free Report) stock.
The business software stock is down over 50% from its 2024 peaks, while trading at a 30% discount to Tech and over 95% below its highs at 17.9X forward 12-month earnings—even though CRM has climbed ~2,300% in the past 20 years vs. Tech’s ~1,100%.
Wall Street is growing increasingly worried that the rapid rise and advancement of AI will make Salesforce’s business software offerings gradually obsolete. But Salesforce is not rolling over and letting AI slowly destroy its business; it’s adapting with AI and churning out impressive growth, poised to nearly double its revenue and 3x its earnings between 2022 and 2027.
CRM is trading at some of its most oversold RSI levels since the 2022 tech selloff and the 2008/2009 financial crisis, while the Nasdaq is trading at some of its most overbought.
Salesforce is also trying to find support at a potentially key technical range highlighted below in blue.
Of course, Salesforce might never return to its highs, which offer 100% upside from its current price. The company may indeed prove unable to navigate the AI age and all the unknowns and changes.
Still, it might be worth building a starter position in the beaten-down tech stock because, as the old saying goes, be greedy when others are fearful.
Image Source: Zacks Investment Research
Salesforce is set to announce its first-quarter results on Wednesday, May 27. Some might want to wait until after its release before they buy, or nibble now in case CRM impresses.
Best Tech Stocks to Buy Now and in June?
Salesforce’s growing portfolio supports sales, marketing, commerce, customer and client engagement, analytics, app development, and much more.
The business software and SaaS vanguard’s days of massive YoY growth are over as it closes in on $50 billion in yearly revenue. This backdrop, and the end of ultra-low interest rates, forced CRM to turn its attention to steady profitable growth, marked by strong earnings expansion.
Salesforce has transformed into a mature, steady growth firm that went from losing money as recently as 2016 to posting strong GAAP and adjusted earnings. It also started paying dividends in 2024, joining the likes of Meta and Alphabet, while buying back stock.
Image Source: Zacks Investment Research
None of these efforts matter to Wall Street, however, if AI eats away at its business and the broader SaaS industry.
Salesforce launched its Agentforce AI tool in October 2024. Since then, it’s incorporated and built out its agentic AI offerings.
Agentforce reached $800 million in annual recurring revenue last year (period ended January 31), up 169% YoY. “We’ve rebuilt Salesforce to become the operating system for the Agentic Enterprise, bringing humans and agents together on one trusted platform,” CEO Marc Benioff said in prepared Q4 remarks in late February.
The business software power grew its revenue by 10% last year as part of 10% average sales growth in the trailing three years.
Image Source: Zacks Investment Research
Salesforce said it is on its way to $63 billion in revenue in its FY30, boosted by Agentic AI. The company is projected to grow its revenue by 11% this year and 9% next year to $50.32 billion, up from $41.52 billion last year.
CRM expanded its adjusted and its GAAP earnings by ~23% last year. Its earnings estimates have climbed recently, with it projected to expand its adjusted EPS by 5% this year and 12% next year. Salesforce is then expected to ramp up its bottom-line growth by an even more impressive clip (see chart above).
Image Source: Zacks Investment Research
The stock is down 20% over the past five years while Tech has surged 115%, weighed down by its 50% fall from its 2024 highs. Salesforce’s average Zacks price target marks 50% upside from its current level, and it would have to climb ~100% to return to its peaks.
CRM stock has climbed ~2,300% in the past 20 years to blow away Tech’s ~1,100% and Microsoft's (MSFT - Free Report) ~1,750%. Despite this long-term outperformance, Salesforce trades at a 30% discount to Tech, over 95% below its highs, and 20% below Microsoft at 17.9X forward 12-month earnings