Salesforce Rises 8% in Three Months: Should You Buy CRM Stock Now?

Salesforce, Inc. CRM shares have soared 8.5% over the past month. This surge has significantly outperformed the broader Zacks Computer – Software industry, which declined 4.4% during the same period.The stock has also outpaced major enterprise software makers, including Microsoft Corporation MSFT, Oracle Corporation ORCL and SAP SE SAP. Shares of Microsoft, Oracle and SAP have declined 4.5%, 5.3% and 5.9%, respectively.Salesforce One-Month Price Return PerformanceImage Source: Zacks Investment ResearchThe outperformance suggests that investors remain confident in Salesforce’s long-term story despite ongoing trade and geopolitical risks. Given the fundamentals, the stock appears to be a buy for now.Salesforce’s Dominance in CRM Software SpaceSalesforce remains the dominant player in the customer relationship management (“CRM”) software space. Its platform is deeply integrated across enterprise systems, making it a go-to solution for businesses.Salesforce has expanded beyond just CRM through acquisitions like Slack, Informatica, Own Company and Zoomin. These deals reflect a long-term strategy to grow in areas like collaboration tools, cybersecurity and AI automation.AI is central to Salesforce’s future. Its Einstein GPT product, launched in 2023, now powers generative AI features throughout the platform. These tools help users automate tasks, make better decisions and serve customers more efficiently.Another long-term tailwind is rising global spending on generative AI. Gartner estimates that worldwide generative AI spending will hit $644 billion in 2025, implying a 76.4% year-over-year increase.Enterprise software, a key segment for Salesforce, is expected to grow even faster, with a projected 93.9% increase. Even if economic conditions slow down spending in the short term, digital transformation remains a top priority for businesses, ensuring steady demand for Salesforce’s solutions.Salesforce’s Resilient Financial PerformanceSalesforce’s latest earnings report highlights just how resilient the company’s financials remain despite ongoing macroeconomic uncertainties. In the last reported results for the second quarter of fiscal 2026, the company’s revenues increased 10% year over year to $10.2 billion, while non-GAAP earnings soared 13.7% to $2.91 per share.The growth in the top and bottom lines reflected the benefits of Salesforce’s go-to-market strategy and sustained focus on customer success. The initiatives to integrate generative AI into its offerings also boosted demand for the company’s solutions during the reported quarter.The Zacks Consensus Estimate indicates that Salesforce will remain in a growth trajectory. The consensus mark for fiscal 2026 and 2027 revenues signifies a year-over-year increase of 8.8% and 9.1%, respectively. Earnings estimate for fiscal 2026 and 2027 indicates year-over-year growth of 10.9% and 11.9%, respectively.Image Source: Zacks Investment ResearchValuation: Salesforce Still a Bargain PickDespite the recent rally, Salesforce shares are trading at a discounted valuation multiple compared to the industry. The stock currently trades at a forward 12-month price-to-earnings (P/E) multiple of 20.81, below the industry average of 31.94.Salesforce Forward 12-Month P/E RatioImage Source: Zacks Investment ResearchSalesforce has a lower P/E ratio than other major enterprise software makers, including Microsoft, Oracle and SAP. At present, Microsoft, Oracle and SAP trade at P/E multiples of 31.44, 34.13 and 34.97, respectively.Conclusion: Buy Salesforce Stock for NowSalesforce remains a dominant player in enterprise software with strong positioning in AI and the CRM software market. Its current valuation is reasonable, and long-term tailwinds like AI adoption and digital transformation continue to support the growth story. All these factors suggest accumulating the stock for now.Moreover, Salesforce carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Salesforce Inc. (CRM): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks