Salesforce.com (NYSE: CRM) is a growth stock that can lead to large return over a long time. Even after COVID-19, cloud spending is not expected to slow down. Salesforce.com makes and sells cloud-based customer relationship management software. CRM software helps businesses track customer information, log issues an manage their marketing campaigns. Retail, manufacturing, healthcare, information technology, and service industries benefit from usage of CRM software.
Why Salesforce is a top growth stock to buy and hold?
- Salesforce dominates in the CRM software market, controlled 18.3% of the global CRM market at the end of 2019. Salesforce’s market share is more than double its closest competitor.
- Salesforce states that it aims to double revenue to $50 billion by 2026.
- Salesforce is a bargain, at less than 10 times sales fiscal 2021 sales, in comparison to most software-as-a-service (SaaS) stocks, which valued at 20 or more times sales.
- Salesforce stock joins the Dow Jones Industrial Average (30-stock benchmark) in Aug. 31, 2020.
- Salesforce builds a cloud-based artificial intelligence platform to drive more revenue in the future.
Therefore, Salesforce is a great company that generates robust growth because it has a future-proof business model and is resistant to economic downturns. This stock will see significant gains for the foreseeable future.