now vs crm stock which one is better choice to buy dip today
ServiceNow
(NOW) is likely the better choice for a "buy the dip" opportunity today, January 29, 2026, as it has a stronger growth outlook and analysts currently give it an edge over Salesforce (CRM). Both stocks experienced significant single-day drops as part of a general software sector selloff, with ServiceNow closing down 9.94% at $116.73 and Salesforce down 6.09% at $214.08. Key Insights
- Performance Today: Both stocks are dipping today due to broad market concerns over AI spending and cloud demand following Microsoft's earnings, but both are considered to be positioned to benefit from investment in AI-driven workflow automation in the long term.
- Growth Outlook: ServiceNow is projected to have significantly faster revenue growth (high teens percentage) over the coming years compared to Salesforce (high single-digit percentage).
- Analyst Sentiment: Analysts generally favor ServiceNow, giving it an average "Moderate Buy" rating and a higher potential upside from current prices (around 66.7%) compared to Salesforce's average "Moderate Buy" rating and a potential upside of around 45.3%.
- Valuation: While ServiceNow is the more expensive stock based on valuation metrics like forward P/S ratio (13.46x vs. 5.74x), its higher growth rate justifies a premium for some investors. Salesforce is seen as more reasonably valued, which some investors might prefer in the current market.
Ultimately, an investment choice depends on your personal risk tolerance and investment strategy. ServiceNow offers higher growth potential but comes with a higher valuation, while Salesforce provides a more stable, albeit slower-growing, option.
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