Is Salesforce the Best AI Stock to Buy This Week?

Lately, Salesforce (CRM) has been one of the most searched-for stocks on Zacks.com. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

What is Salesforce?

Salesforce is a cloud-based software company that offers businesses tools that help them find more predictions, close more deals, and provide an advanced level of facility to their customers.

Salesforce is a popular CRM tool for support, sales, and marketing teams globally. 

Salesforce Stock

Is Salesforce the best AI stock for investment? The stock of this developer specializing in salesforce software has seen a decline of 6%, in contrast to the Zacks S&P 500 composite which has seen an increase of 1.3% over the past month. During this same timeframe, the Zacks Computer - Software sector, which includes Salesforce.com, experienced a decrease of 2.4%.

While media reports or rumors often lead to a temporary fluctuation in a company's stock price by influencing its immediate trend, it is the core fundamental factors that ultimately stimulate the decision to buy and hold. Considering this point of view, is salesforce the best AI stock to buy this week?

Zacks orders evaluating changes in a company's earnings projection as the primary determinant of its fair stock value. They believe that the stock's fair value is resolute by the current value of its future earnings stream. Zacks closely examines how sell-side analysts are studying their earnings estimates for a company, with upward revisions indicating potential increases in the stock's fair value.

Zacks highlights the strong correlation between trends in earnings estimate revisions and near-term stock price actions. When earnings estimates increase, the fair value of the stock tends to rise, creating investor interest and driving the stock price higher.

The earnings estimates for Salesforce.com for the present and next fiscal years, along with the latest change in these estimates. Despite the unchanged consensus estimates over the last 30 days, the size of the recent change in estimates, along with other factors, has led to a Zacks Rank #2 (Buy) for Salesforce.com. While evaluating AI investments, a critical inquiry emerges - is Salesforce the best AI stock to buy? Research suggests that the salesforce stock may outperform the broader market in the near time.

While earnings growth is crucial, revenue growth is also essential for a company's financial health. The excerpt provides consensus sales estimates for Salesforce.com, indicating year-over-year changes for the current quarter and fiscal years.

Salesforce.com's last reported marks as the best AI stock to buy. The company has consistently beaten consensus EPS and revenue estimates in the trailing four quarters.

The excerpt discusses the importance of considering a stock's valuation in investment decisions. Salesforce.com is graded D on the Zacks Value Style Score, suggesting that it is trading at a premium to its peers. However, this segment also emphasizes the need to consider various valuation metrics to determine whether a stock is overvalued, rightly valued, or undervalued.

Zacks.com, can help investors decide whether Salesforce.com is worth paying attention to. Despite being graded D on valuation, the Zacks Rank #2 indicates potential outperformance in the upcoming period.

Having examined Salesforce's AI advancements, market performance, and future potential, we circle back to the fundamental inquiry: Is Salesforce the best AI stock to buy? Our article provides investors with valuable insights into Salesforce.com's stock, considering factors such as earnings estimates, revenue growth, surprise history, valuation, and Zacks Rank.