Be Greedy for Salesforce (NYSE:CRM) Stock While the Market Is Fearful – TipRanks | Jewelry Dukan

Despite gloomy market forecasts, Salesforce (NYSE:CRM) delivered another quarter of double-digit revenue growth. But despite his consistent performances over the past few quarters and his impeccable track record of hitting profits, his stock market performance has been abysmal. Still, it’s probably the right time to follow Warren Buffett’s lead and be greedy when others are afraid. As such, we are bullish on CRM stocks.

The odds still don’t justify investors trading bearish. Though headwinds are hurting recurring revenue streams, the company continues to post strong revenue gains. As a pioneer of multiple customer relationship management (CRM) products, the company remains at the forefront of data analytics, integrated data systems, and complex task automation.

According to estimates, the company had a market share of around 19% of the global CRM market in 2019. That number is likely to have grown with the acquisitions of Slate and Tableau, which also contributed to the company’s multi-industry expansion. In addition, the CRM initiatives in healthcare and the introduction of Industry 4.0 applications have created an incredible image of the company in the technology space.

The latest developments suggest that the company is tackling data security issues by adopting blockchain technology. Salesforce is stepping up its game in this department to gain a healthy market share in data encryption technologies.

Salesforce’s 360 penetration strategy is paying off for the company. It has helped solve data integration problems and enables businesses to expand across public and private organizations.

Looking to large industrial customers, Salesforce Inc.’s services have deeply penetrated the automotive, communications, petroleum, financial services, and healthcare industries. Its strong customer base includes Amazon Web Services, The Hershey Company, New York Post and others. In addition, the company has worked with local and regional governments to provide the services.

Currently, the decline in the company’s services, marketing and data revenue reported in the Q2 results is due to prudent buying behavior. However, these headwinds are likely to pass as consumer markets show renewed strength in the coming quarters.

Catalysts ahead for CRM stock

Several developments related to big tech and remote work are catalyzing the expansion of the virtual world across the globe. It was 2015 when Salesforce launched a health cloud product with a limited customer base. However, the portfolio in the niche now caters to health insurance companies, public health departments, life sciences companies, and digital health services. The lockdowns caused by COVID-19 also forced companies to integrate customer-facing CRM systems.

A recent report from the PWC Experience Center shows that more than half of companies are likely to adopt digital transformation due to an improved customer experience.

Similarly, organizations leveraging data analytics through the Internet of Things, Big Data, and process optimization have seen many successes in tackling technological change. All of these developments fit into the spectrum of solutions offered by Salesforce.

Blockchain-Based Data Encryption: A Win-Win Bet for CRM Stocks

The rise of data theft and data breaches has forced companies to reassess their plans to adopt cloud-based CRM systems. Salesforce recognizes the challenges associated with encryption and is investing heavily in data encryption via blockchain technology. Recently, Salesforce announced an on-premises platform that enables organizations to share authentic, dispersed, third-party datasets from different networks. Blockchain-powered data encryption also aligns with consumer privacy concerns.

Technology is perhaps twice as important to the healthcare industry. Research shows that healthcare consumers often go wrong when accessing digital health services. This is because health data security is at the heart of their privacy. Therefore, blockchain data encryption will likely add credibility to its CRM solutions.

Will CRM Stock Go Up?

As far as Wall Street is concerned, CRM stock retains a consensus rating of Strong Buy. From a total of 33 analyst ratings in the last three months, 29 buy ratings, four hold ratings and zero sell ratings were given. The average CRM target price is $225.19, which represents a 48.3% upside potential. Analyst price targets range from a low of $150 per share to a high of $320 per share.

Sell-off in CRM stock not justified

The sell-off in CRM stock is unjustified as the company continues to release strong numbers on both revenue and earnings. In addition, CRM remains in an excellent position to capitalize on the growing trend towards digitization. The impact of technology is undeniable and will continue to dominate our lives. Salesforce offers solutions for companies to effectively handle big data in real time.

Its software solutions are used by some of the leading companies around the world. Additionally, CRM and many of its competitors are currently trading at cheap prices. The broad sell-off in the technology sector has created numerous opportunities to invest in equities for the long term. As such, it might be an excellent time to invest in a stock like CRM.


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