Is Salesforce Stock A Buy At $230?

Core Viewpoint - Salesforce (CRM) is currently trading near a support zone, which has historically led to significant rebounds, making it a potentially attractive investment opportunity [2][3] Group 1: Stock Performance and Support Levels - CRM stock is hovering around $230, within a support zone of $221.19 to $244.47, where it has previously rebounded significantly [3] - Over the past decade, CRM stock has shown buying interest at this level on five occasions, achieving an average peak return of 31.8% [3] Group 2: Fundamentals and Market Conditions - Robust fundamentals are evident, with healthy margins and cash flow, and the CRM market is expected to experience double-digit AI-driven growth [4] - Analyst consensus indicates a "Moderate Buy" rating, with potential upside to average price targets despite recent downward adjustments [4] - Upcoming Q3 FY2026 earnings are projected to show solid EPS growth and ongoing momentum from Agentforce/Data Cloud, which could act as a catalyst for the stock [4] Group 3: Historical Volatility and Risks - Despite strong fundamentals, CRM has experienced significant declines in the past, including a 70% drop during the Global Financial Crisis and a 59% decline during the recent inflation shock [6] - The stock has also faced declines of approximately 36% during the Covid pandemic and 25% during the 2018 correction [6] Group 4: Financial Metrics - Revenue growth for CRM stands at 8.3% for the last twelve months (LTM) and an average of 10.5% over the last three years [10] - The company has a free cash flow margin of approximately 31.6% and an operating margin of 21.2% LTM [10] - CRM stock is currently trading at a price-to-earnings (PE) multiple of 39.1 [10]