We recently published a list of 10 Best US Stocks To Buy For Foreign Investors. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other best American stocks to buy.
In the coming week, the resilience of the US stock market will be challenged as President Trump’s tariff plans and employment report reveal the actual condition of the economy. Price pressures led to the broader market ending the week on a loss, and the benchmark was in correction territory earlier this month. Market experts believe the economy is moving too fast, and there is much volatility, so it is hard to predict the outcome for the coming months. Trump set April 2 as the date he will announce several tariffs.
The Bank of America cautioned investors to prepare for a double-digit correction this year that will shake the stock market. The firm sees the broader market dipping to 5,000 if the economy takes a nosedive and unemployment peaks. However, BofA believes that if the benchmark hits 5,000, it can recover and close the year at 5,500. According to its base case, BofA expects stocks to finish the year higher, with the benchmark oscillating between 5,885 and 6,175 points. This indicates an upside of nearly 7% from present levels. Wall Street experts are also predicting a recession might be in the cards. Markets are currently fretting over soft economic data and awaiting the effect of tariffs.
While the economy is teetering and has investors on edge, some experts see buying opportunities in this market. Laura Champine, Senior Consumer Analyst at Loop Capital Markets, joined CNBC on March 14 and commented that markets are shaky, but there are opportunities in consumer discretionary stocks. This macro environment is suitable for some American companies that can quickly adjust, especially retailers with a loyal customer base and that do not rely on imported products. Some big-box retailers primarily make money from subscription fees, so tariffs don’t threaten their earnings. Moreover, Champine was also bullish on select cruise line stocks, even while the market generally pulls back from travel stocks for now since their cruises are booked for the next year in advance. So earnings won’t take a significant hit in the current environment. The analyst also recommended a US manufacturer of appliances, which has significantly plummeted. Still, she noted that this is the best time to buy because American manufacturers will likely fare well under the current government.
To put buying opportunities in perspective, Wall Street’s AI darling recently went through a slump. According to BofA, this could be an opening for investors who want exposure to semiconductors, GPUs, and AI. Similarly, Jim Lebenthal, Chief Equity Strategist at Cerity Partners, told CNBC on March 10 that the current market offers an excellent opportunity to pick up Magnificent Seven stocks since they’re trading at great prices. Keeping expert advice in mind on how to invest in the present market environment, let’s take a look at the best American stocks to buy for foreign investors.
A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.
Our Methodology
To find the best US stocks for foreign investors, we started from the top of Insider Monkey’s Q4 2024 database to identify US stocks. Then, we checked for average upside potential for these stocks to understand what analysts were bullish on. To finalise our selection, we chose the top 10 US stocks owned by elite hedge funds, with an average upside potential of over 30% as of March 30. The stocks are ranked in ascending order of the hedge fund sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Average Upside Potential as of March 30: 39.12%
Salesforce, Inc. (NYSE:CRM) is a California-based company specializing in customer relationship management technology. CRM is focused on customer service, marketing and sales, e-commerce, artificial intelligence, and app development. It is one of the best American stocks to buy, with an average upside potential of 39% as of March 30. Analysts and Wall Street hedge funds alike are bullish on the company.
On March 24, Truist Securities reaffirmed a Buy rating on Salesforce, Inc. (NYSE:CRM) with a price target of $400, noting that its diverse data center and AI offerings could accelerate the company’s growth in fiscal year 2026 and 2027.
For the fourth quarter of FY25, the company posted a revenue of $10 billion, up 8% from the same quarter last year. For the full year, Salesforce’s GAAP operating margin came in at 19%, with an operating cash flow of $13.1 billion and free cash flow of $12.4 billion, up 28% and 31% year-over-year, respectively. Salesforce, Inc. (NYSE:CRM) made share repurchases worth $7.8 billion and returned $1.5 billion to shareholders in dividends during the year.
On March 28, Salesforce announced a $0.42 per share quarterly dividend, a 5% increase from its last dividend of $0.40. The dividend will be paid on April 24 to shareholders on record as of April 10.
According to Insider Monkey’s fourth quarter database, 162 hedge funds were bullish on Salesforce, Inc. (NYSE:CRM), up from 116 in the earlier quarter. ValueAct Capital is a prominent company stakeholder, with 2.8 million shares valued at $969 million.
Overall, Salesforce, Inc. (NYSE:CRM) ranks 6th on our list of the best US stocks to buy for foreign investors. While we acknowledge the potential of CRM to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
