Jim Cramer’s 5 Comeback Stocks

In this article, we discuss Jim Cramer’s 5 comeback stocks. If you want to see more stocks in this selection, check out Jim Cramer’s 10 Comeback Stocks. 

5. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

Salesforce, Inc. (NYSE:CRM) is a California-based provider of customer relationship management technology that brings enterprises and customers together worldwide. Cramer’s Charitable Trust owns shares of Salesforce, Inc. (NYSE:CRM) and he believes the stock can make a comeback, pointing to the solidity of the underlying business fundamentals. However, as of December 5, Salesforce, Inc. (NYSE:CRM) stock price hit a 52-week-low as the company’s post-earnings decline continued and indicated little signs of coming to an end any time soon.

On December 8, Baird analyst Rob Oliver downgraded Salesforce, Inc. (NYSE:CRM) to Neutral from Outperform with a price target of $150, down from $200. The macro environment remains constrained and latest executive departures are concerning, the analyst told investors in a research note. He believes the combination of macro headwinds and software pressure could tamper Salesforce, Inc. (NYSE:CRM)’s revenue growth near term. 

According to Insider Monkey’s Q3 data, Salesforce, Inc. (NYSE:CRM) was part of 117 hedge fund portfolios, compared to 116 in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 12.7 million shares worth $1.8 billion. 

Aristotle Atlantic made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q3 2022 investor letter:

“We sold Salesforce, Inc. (NYSE:CRM) to reduce our weighting in the Information Technology sector. Salesforce held their investor day, and the company reiterated their organic Fiscal Year 2026 revenue target of $50 billion. This target remains more back-end loaded based on current slowing macroeconomic conditions and requires new annual contract growth well ahead of what the company has been averaging for the past few years. We are skeptical that the company will be able to achieve this revenue target organically and see Merger & Acquisitions (M&A) being key to achieving the growth. While we believe Salesforce has shown good success in growing its non-CRM clouds, we do see more competitive pressures emerging for the Marketing and Customer Service Clouds, specifically on the pricing side during a global economic slowdown.”