"The five-year chart of Salesforce stock might look aimless and random at first glance. Bear in mind, though, that charts can tell us where the buyers tend to step in. This five-year chart provides some clues about how far CRM stock could travel in either direction. The stock was double its current price just a year ago, and it has rallied above $300 at least three times in the past."
"Recent history suggests that it's difficult to keep Salesforce stock below $200 for very long. The interest-rate malaise of 2022 pushed CRM stock below $200 for a while, but just holding on and waiting for a recovery proved to be a highly profitable strategy. In any case, the risk-to-reward profile is more favorable now that Salesforce shares trade below $200. Partially due to the reduced share price, Salesforce now trades at 24.23 times trailing 12-month earnings, indicating a reasonable valuation for a mega-cap technology business."
Salesforce, once highly favored and added to the Dow Jones in 2020, has seen investor sentiment turn negative recently. The stock recently fell below $200, a level that historically has not persisted long and previously produced strong recoveries. Salesforce shares trade at about 24.23 times trailing 12-month earnings, suggesting a reasonable valuation for a mega-cap software company. Technical charts show recurring buying interest at lower prices, and the stock has rallied above $300 multiple times in five years. Value-oriented and contrarian investors may view current levels as an opportunity to scale into or accumulate shares for a decade-long horizon.
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