Long-Term Stock Portfolio: 15 Best Stocks for 15 Years

5. Salesforce, Inc. (NYSE:CRM)

10-year Revenue Growth: ~21.5%

Number of Hedge Fund Holders: 162

Salesforce, Inc. (NYSE:CRM) offers customer relationship management technology that connects companies and customers. Morningstar expects a 5-year compound annual growth rate for total revenue of 8% through the fiscal year 2030, which is expected to be aided by healthy growth in all clouds, with the most significant strength coming from the data cloud. As per the firm, Salesforce, Inc. (NYSE:CRM) has a wide economic moat, stemming mainly from switching costs, with the network effect acting as a secondary moat source.

Elsewhere, Truist Securities remains optimistic about the company’s stock, citing Salesforce, Inc. (NYSE:CRM)’s diverse portfolio, which includes Data Cloud and AI/Agentforce, as well as improvements in other segments like Marketing Cloud, as key factors in achieving growth revitalization. The analyst believes that such elements can act as catalysts for Salesforce, Inc. (NYSE:CRM)’s performance over the upcoming years. Apart from these factors, the analyst highlighted the company’s capital allocation strategy, which is aided by a robust balance sheet.

Salesforce, Inc. (NYSE:CRM)’s extensive product portfolio, large installed base, and global distribution network offer numerous competitive advantages. Mar Vista Investment Partners, LLC, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Investors cheered a solid fiscal year Q3 performance from Salesforce, Inc. (NYSE:CRM), with results driven by strength in subscription revenues, current remaining performance obligations (CRPO), and operating margin. Both the Sales and Service Clouds returned to double-digit growth, fueled by strong adoption of multi-cloud and vertical-specific solutions. These results highlight Salesforce’s ability to address diverse customer needs and sustain growth across its core offerings.

Management expressed significant excitement about Agentforce, an organically developed generative AI product that is garnering enthusiasm from both system integrator partners and customers alike. This innovation underscores Salesforce’s commitment to delivering innovative solutions that enhance customer engagement and drive productivity. While Agentforce’s contributions to subscription revenues and CRPO bookings are still immaterial for now, the growing pipeline provides a solid foundation for optimism around Salesforce’s ability to productize and monetize its generative AI offerings.”