10 Cheap Software Stocks to Buy According to Analysts

7. Salesforce, Inc. (NYSE:CRM)

Forward P/E Ratio: 23.89

Analyst Upside: 26.61%

Salesforce, Inc. (NYSE:CRM), headquartered in San Francisco, California, is an American cloud-based software firm that specializes in customer relationship management. The firm offers custom software and solutions built for a variety of areas, including sales, marketing automation, and analytics.

On February 27, BMO Capital Markets lowered its price target for Salesforce, Inc. (NYSE:CRM) to $367 from $375, while keeping an Outperform rating. The firm’s analysts commented on Salesforce’s Q4 performance, stating that the company presented a strong yet unremarkable report. According to BMO Capital, the company’s year-over-year rise in computed billings and free cash flow for the January quarter exceeded its expectations, with the company maintaining exceptional gross profit margins of 76.94% and achieving revenue growth of 9.53% over the previous twelve months. In addition, the prediction for fiscal year 2026 subscription revenue increase of 9% year on year on a constant currency basis matched their expectations.

Mar Vista Global Quality Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:

“Investors cheered a solid fiscal year Q3 performance from Salesforce, Inc. (NYSE:CRM), with results driven by strength in subscription revenues, current remaining performance obligations (CRPO), and operating margin. Both the Sales and Service Clouds returned to double-digit growth, fueled by strong adoption of multi-cloud and vertical-specific solutions. These results highlight Salesforce’s ability to address diverse customer needs and sustain growth across its core offerings.

Management expressed significant excitement about Agentforce, an organically developed generative AI product that is garnering enthusiasm from both system integrator partners and customers alike. This innovation underscores Salesforce’s commitment to delivering innovative solutions that enhance customer engagement and drive productivity. While Agentforce’s contributions to subscription revenues and CRPO bookings are still immaterial for now, the growing pipeline provides a solid foundation for optimism around Salesforce’s ability to productize and monetize its generative AI offerings.”