The Best and Worst Dow Stocks for the Next 12 Months

2. Salesforce Inc. (NYSE:CRM)

Upside Potential: 51.7%

Market Cap: $241 billion

Number of Hedge Fund Holders: 162

Salesforce Inc. (NYSE:CRM) is a global leader in customer relationship management (CRM) software. Its cloud-based platform provides sales, service, marketing, and commerce solutions, enabling businesses to build stronger customer connections using data and AI. Salesforce’s AI-driven tools, including Einstein, offer predictive insights and automation to boost productivity.

Salesforce Inc. (NYSE:CRM) is the worst performer in the Dow Jones Index on a YTD basis (-25% as of the close of April 23). Besides the volatility in the technology sector, the underperformance was mainly linked to a softer outlook for next year. For FY 2026, the company guided revenue to be $40.5-$40.9 billion compared to the consensus estimate of $41.5 billion. This was seen as an indication of a slowdown and thus weighed on the share price performance.

Due to the weaker macro environment, technology stocks, particularly cloud computing stocks, have seen downward revisions in their earnings estimates. For example, Piper Sandler analyst had lowered his estimates and price targets across the cloud applications and analytics sector in a report published around April 23. As part of this exercise, he reduced the price target for Salesforce Inc. (NYSE:CRM) to $315 from $400 but maintained his Overweight rating. At the end of March, analysts from Jefferies had also reduced the price targets across their software coverage to account for compressed valuation multiples. With a Buy rating, he lowered Salesforce’s price target to $375 from $425.

The consensus opinion remains bullish on the stock with a 1-year median price target of $375. The company is currently focusing on scaling and expanding its Agentforce tools, which are expected to take time to grow. The company has already reported closing thousands of Agentforce deals and expects a significant revenue contribution next year.