Salesforce: Undervalued And Ready To Rebound On A Likely Q2 Beat

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Jul. 18, 2025 11:12 PM ETSalesforce, Inc. (CRM) Stock, CRM:CA StockCRM, CRM:CA1 CommentOakoff InvestmentsInvesting GroupSummaryAfter a prolonged correction, Salesforce is oversold. I think its AI growth engine, combining Agentforce and Data Cloud, is poised to re-accelerate top-line growth.I anticipate strong Q2 FY2026 results, driven by resilient demand and the successful integration of recent acquisitions.Wall Street has set a low bar for Q2 earnings, with consensus estimates below management's own guidance, creating a clear setup for a beat.Now a GARP stock, CRM is ~30% undervalued on a forward PEG basis and offers a solid ~4.8% shareholder yield through buybacks and dividends.My own valuation calculation points to a $315 price target, representing ~21% upside, as strong free cash flow and buybacks justify a higher valuation multiple in the future. CRM is a GARP "Buy" at these price levels.wdstockMy Past Coverage Of SalesforceI wrote my very first bullish article on Salesforce (NYSE:CRM) back in July 2024, arguing that despite moderating growth rates of the business, the firm's margins looked stable, and CRM could receive anStruggle to access the latest reports from banks and hedge funds?With just one subscription to Beyond the Wall Investing, you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.This article was written byOakoff Investments8.66K FollowersOakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CRM over the next 72 hours. 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.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comment(1)Recommended For You