CrowdStrike Loses Ground as Salesforce Wins Momentum Battle

Salesforce and CrowdStrike, two prominent players in the enterprise software and cybersecurity sectors, are set to report their earnings on August 26. Analysts have differing opinions on which stock is more likely to outperform.

The analyst consensus shows that CrowdStrike has a slightly heavier tilt with 77% of analysts being bullish and 2% bearish, compared to Salesforce's 73% bullish and 4% bearish. However, CrowdStrike carries more Strong Buy ratings and fewer skeptics, giving it an edge.

Looking at price targets, Salesforce has a clean alignment between analyst targets and internal model signals, with the stock currently trading at $205.69 against an analyst target of $243.98. In contrast, CrowdStrike's analyst target is significantly lower than its internal model signal, indicating a divergence in expectations.

Momentum also favors Salesforce, with the stock having gained 4.9% over one week and 25.7% over one month, despite being down 22.4% year-to-date. CrowdStrike, on the other hand, has lost ground, falling 12.9% over one week.

Considering these factors, Salesforce is the pick for a retirement-focused portfolio right now, with its signal alignment and cleaner momentum making it a more attractive option. However, CrowdStrike earns credit for its strong revenue growth and net new ARR guidance.