Salesforce: Great Time For A Contrarian Buy Position As PEG Ratio Approaches 1x (Rating Upgrade)


  • 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.
Street scenes of Transit Center Salesforce at Bay 29, San Francisco, CA, USA. Cars and buses in movement and people walking on the streets.

Rosangela Perry/iStock Editorial via Getty Images

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 (

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.

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