Every month, we highlight three of the best buying opportunities from our database. This is an opinion on which stocks will most likely outperform over the next 5 years at today’s prices.

As one of software's marquee names, Salesforce hasn't been spared in the sector-wide re-rating. The pace of AI change is mind-blowing, and anyone who claims to know exactly what enterprise software looks like in three years is bluffing.

The bear case comes in two flavours. First, vibe coding: the idea that enterprises will start building their own software in-house. Maybe. But enterprises are great at making semiconductors, selling soap, and running restaurants. They are not great at building and maintaining world-class software. Salesforce's customers pay for a battle-tested, constantly evolving platform shaped by feedback from hundreds of thousands of users. And here's the thing critics conveniently ignore: the AI tools enabling those in-house experiments are equally available to Salesforce itself.

Second, seat compression: fewer employees means fewer seats, therefore less revenue. Fair concern in theory, but Salesforce has a credible offset: charge more per seat as each one becomes dramatically more productive. But so far, there's no evidence of seat counts actually declining.

We think software companies that are the system of record for enterprises are extraordinarily hard to displace. Salesforce is already deeply embedded, widely adopted, and well positioned to layer agentic AI on top of existing customer relationships. The numbers back this up: retention rates are holding steady and margins are still expanding, despite fears of AI-driven cost pressure. If the bear case were playing out, you'd expect seat counts to slow, then flatten, then decline. That process would take a very long time (enterprises don’t replace their entire tech stacks overnight), and right now, there's simply no sign of it.

Model assumes 8% revenue growth per year, a cash flow margin of 28%, 940 million shares outstanding at the end of the period, dividend growth of 2%, and a terminal multiple of 20x

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