Salesforce Inc. (NYSE:CRM) stock is trading higher Thursday as enterprise software stocks outperform the broader technology sector. The Nasdaq Composite fell 0.65%, while the S&P 500 gained 0.07%.
Why Enterprise Software Stocks Are Rising
Enterprise software stocks are gaining as investors rotate away from heavily indebted companies with significant exposure to artificial intelligence infrastructure.
Instead, investors are favoring established software companies with recurring revenue and more predictable cash flows.
Concerns about persistent inflation and elevated interest rates are also driving interest in companies with proven business models and lower capital requirements, according to Benzinga Pro.
Salesforce Secures Major UK Tax Modernization Deal
Separately, Salesforce announced Thursday a 15-year agreement worth up to 2 billion British pounds (about $2.65 billion) with HM Revenue & Customs, the UK’s tax authority.
The deal aims to modernize tax services for more than 39 million individuals and businesses using Salesforce’s AI-powered Agentforce platform. It also supports HMRC’s goal of delivering 90% of its services digitally by 2030.
Technical Analysis
Salesforce shares remain above their major moving averages, signaling a bullish trend.
The stock trades 5.2% above its 20-day simple moving average of $233.02 and 23.1% above its 200-day average of $199.17.
A golden cross formed in September, when the 50-day moving average rose above the 200-day average.
Additionally, the MACD remains above its signal line, suggesting improving buying momentum.
The stock faces resistance near $268.50, just below its 52-week high. Key support stands at $220.50.
Analyst Outlook
The stock carries a consensus Buy rating and an average price forecast of $279.04.
On Oct. 12, Bank of America Securities upgraded Salesforce to Buy and raised its price forecast to $285.
Citizens maintains a Market Outperform rating with a $315 price forecast, while Stephens holds an Equal-Weight rating with a $289 forecast.
CRM Price Action
Salesforce shares gained 3.89% to $245.13 at last check Thursday, according to Benzinga Pro data.
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