Salesforce Stock Testing Price Floor – Buy Now?
Salesforce (CRM) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($243.82 – $269.48), levels from which it has bounced meaningfully before. In the last 10 years, Salesforce stock received buying interest at this level 6 times and subsequently went on to generate 23.4% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 6/23/2021 | 10.9% | 70 |
| 9/13/2021 | 22.0% | 56 |
| 12/7/2023 | 27.3% | 85 |
| 6/6/2024 | 9.5% | 74 |
| 9/6/2024 | 51.0% | 89 |
| 4/22/2025 | 19.6% | 24 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For CRM Read Buy or Sell CRM Stock to see how convincing this buy opportunity might be.
CRM stock may swing. A balanced allocation doesn’t. Trefis’ Boston-based, wealth management partner blends strategy and discipline to smooth out market noise.
Here are some quick data points for Salesforce that should help decision:
- Better Value & Growth: CRM, ORCL Lead Synopsys Stock
- Buy or Sell Salesforce Stock?
- Salesforce’s Pivot: Why “Agentforce” Matters More Than the Earnings Beat
- Salesforce Stock Hits Key Support – Buying Opportunity?
- ORCL, CRM Top Synopsys Stock on Price & Potential
- Could Cash Machine Salesforce Stock Be Your Next Buy?
- Revenue Growth: 8.3% LTM and 10.5% last 3 year average.
- Cash Generation: Nearly 31.6% free cash flow margin and 21.2% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for CRM was 8.3%.
- Valuation: CRM stock trades at a PE multiple of 36.8
For quick background, Salesforce provides customer relationship management technology and a platform that enables connected experiences across industries like financial services, healthcare, and manufacturing worldwide.
| CRM | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| PE Ratio | 36.8 | 23.6 |
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| LTM* Revenue Growth | 8.3% | 5.4% |
| 3Y Average Annual Revenue Growth | 10.5% | 5.2% |
| Min Annual Revenue Growth Last 3Y | 8.3% | -0.1% |
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| LTM* Operating Margin | 21.2% | 18.7% |
| 3Y Average Operating Margin | 17.8% | 18.1% |
| LTM* Free Cash Flow Margin | 31.6% | 13.3% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
Salesforce isn’t immune to big drops. It fell about 70% in the Global Financial Crisis, 59% during the inflation shock, and over 35% in the Covid sell-off. Even smaller pullbacks like in 2018 took it down nearly 25%. Good fundamentals don’t stop these deep dives when markets turn south.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read CRM Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.