CRM - Salesforce: Great Time For A Contrarian Buy Position As PEG Ratio Approaches 1x (Rating Upgrade)
2024-06-14 14:18:18 ET
Summary
- Salesforce has continued to plummet after its Q1 earnings print, positioning this stock as a near-term buy.
- Investors panned the company's weaker growth relative to the past, but key cloud areas are showing impressive constant-currency growth.
- The stock is trading at a ~1.1x PEG ratio, approaching a buy point if it slides ~5%-10% lower.
- Earnings also grew 44% y/y in the most recent quarter (vs. just 11% revenue growth) and is expected to grow 20% y/y this year.
With the market continuing to dance around all-time highs, I continue to favor contrarian positions that go against the general market take. My goal in buying potential rebound plays is to reduce correlation to broader market swings, and to me, Salesforce ( CRM ) is approaching buy territory....
Salesforce: Great Time For A Contrarian Buy Position As PEG Ratio Approaches 1x (Rating Upgrade)