shares of Salesforce Inc NYSE: CRM have been An excellent performer This year, as they continue to add to the 180% rally that began in late 2022. in two years, This technological giant Looking stronger than ever. Up 70% since May alone and already setting record highs this month, Salesforce has cemented itself as one of the market’s top growth names.
Salesforce today
(as of 12/17/2024 ET)
- 52-week range
- $212.00
▼
$369.00
- Dividend yield
- 0.46%
- P/E ratio
- 57.73
- Price target
- $377.24
Salesforce’s bread and butter is in enterprise customer relationship management (CRM) software. It has been a red-hot stock for some time, with investors and analysts similar Seeing it as a major player in the future of AI-powered business tools.
However, despite the many gains under its belt, there are several reasons why investors should still be bullish about Salesforce’s prospects in the coming months. Let’s jump in and take a closer look.
Salesforce’s strong fundamentals drive growth
To begin withThe company has strong fundamental performance. A small Missing out on earnings Early December may stand out as a blemish, but it’s minor when you consider the bigger picture. For the most part, Salesforce beat expectations with its earnings reports earlier in the year, consistently beating forecasts quarter after quarter.
Even in this month’s report revenue hit a record high, and overall, EPS growth remains impressive. There were other bright spots in the form of operating cash flow of 30% year-on-yearWhile The company returned $1.2 billion to shareholders through a combination Share repurchase and dividend payments.
Given how well its fundamental performance is trending in the right direction, it’s no surprise that Salesforce shares are soaring.
Why are analysts bullish on Salesforce stock?
It’s also worth noting that multiple bullish analyst updates suggest that Salesforce still has plenty of room to climb. Just this week, the team at KeyCorp came out with a sharp upgrade, raising its rating from Overweight to Sector Weight. The reason? They see Salesforce’s artificial intelligence offering, AgentForce, setting the new standard in enterprise management software.
Salesforce stock forecast today
$377.24
Up 7.48%buy medium
Based on 41 analyst ratings
| High forecast | $450.00 |
|---|---|
| Average forecast | $377.24 |
| Less predictable | $236.00 |
Agentforce is the energy around is echoing Strongly with customers, partners and investors. The KeyCorp team has explained it The next evolution of AI And a leap from the copilot AI models seen in recent years. While it remains in the early stages, KeyCorp sees this “agent wave” creating a buzz that could increase share price momentum. as well Before meaningful income is realized In 2025.
This bullish call is consistent with earlier upgrades from Jefferies, JPMorgan Chase, and RBC. All of which were highlighted Salesforce’s growth runway and AI opportunities. of KeyCorp $440 price target will be Especially attractiveGiving it an upside point of about 25% where the stock closed on Monday.
Balancing caution with bullish market signals
of course Not everyone is Fully on board with the bullish outlook. Macquarie initiated coverage last week with a neutral rating, joining Loop Capital and Citi in their stand earlier this month and taking a more cautious stance. After two years of near-constant rallying, they’re waiting to see if Salesforce can hold its potential. to realize More completely Before jumping on board. These concerns highlight the need for Salesforce to consistently deliver correct From the beginning of 2025.
As we heaHowever, in the last two weeks of the year dThere aThere are more reasons to be bullish than bearish. For saleCE’s technical setup, for example, is another reason for investors to be optimistic. One of the most telling indicators here The Relative Strength Index (RSI), is a momentum gauge that measures whether a stock is overbought or oversold. At its current reading of 62, Salesforce’s RSI indicates no bullish momentum. yet Being in an overbought area. In other words, there is still a ton of room to run.
That technical setup is supported by the company’s strong fundamentals, bullish analyst upgrades and Broad market tailwindsAs the S&P 500 hits fresh highs and the Fed cuts ratesand Salesforce is offering Absolutely The kind of big reward potential investors crave.
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