Salesforce: Buy This Bottom Aggressively

Aug. 21, 2022 12:59 PM ETSalesforce, Inc. (CRM)28 Comments

Summary

  • Salesforce is scheduled to report its Q2 earnings release on August 24. As a result, the market's attention has turned to macro headwinds impacting enterprise IT spending.
  • Therefore, we urge investors to focus on management's commentary on whether it sees marked weakness in IT spending that could affect its growth.
  • However, we posit that Salesforce's growth cadence should remain robust even if topline growth normalizes further. Moreover, its focus on driving profitability should spur a re-rating.
  • Coupled with our assessment of a sustained bottom in July, we postulate that CRM's downside seems limited from here.
  • Accordingly, we revise our rating from Hold to Buy.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Salesforce New York City

wdstock

Thesis

Salesforce, Inc. (NYSE:CRM) is slated to report its highly anticipated FQ2'23 earnings release on August 24. As SaaS stocks were hammered, the enterprise cloud computing leader's stock has come under significant pressure over the past seven to eight

Salesforce Sales Cloud change % and Service Cloud change %

Salesforce Sales Cloud change % and Service Cloud change % (Company filings)

Salesforce RPO change %

Salesforce RPO change % (Company filings)

Salesforce revenue change % and adjusted EBIT change % consensus estimates

Salesforce revenue change % and adjusted EBIT change % consensus estimates (S&P Cap IQ)

CRM TTM P/FCF valuation trend

CRM TTM P/FCF valuation trend (koyfin)

Do you want to buy only at the right entry points for your growth stocks?

We help you to pick lower-risk entry points, ensuring you are able to capitalize on them with a higher probability of success and profit on their next wave up. Your membership also includes:

  • 24/7 access to our model portfolios

  • Daily Tactical Market Analysis to sharpen your market awareness and avoid the emotional rollercoaster

  • Access to all our top stocks and earnings ideas

  • Access to all our charts with specific entry points

  • Real-time chatroom support

  • Real-time buy/sell/hedge alerts

Sign up now for a Risk-Free 14-Day free trial!

This article was written by

JR Research profile picture
21.06K Followers
Sifting through the ultimate growth stocks for your portfolio

Unlock the secrets of successful investing with JR Research - led by founder and lead writer JR. Our dedicated team is laser-focused on providing you with the clarity you need to make confident investment decisions.

Transform your investment strategy with our popular marketplace service - specializing in a price-action-based approach to uncovering the hottest growth and technology stocks, backed by in-depth fundamental analysis. Plus, stay ahead of the game with our general stock analysis across a wide range of sectors and industries.

Improve your returns and stay ahead of the curve with our short- to medium-term stock analysis. We not only identify long-term potential but also seize opportunities to profit from short-term market swings, using a combination of long and short set-ups. Join us and start seeing experiencing the quality of our service today.

My LinkedIn: www.linkedin.com/in/seekjo







Disclosure: I/we have a beneficial long position in the shares of MSFT, CRM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (28)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.