The options market expects Salesforce (CRM) shares to rally on the back of its fiscal Q2 earnings set to be released after the market closes on Aug. 26. Consensus is for the enterprise software giant to post $2.35 in earnings per share (EPS) for its second quarter, up 3.52% year-over-year.
The bullish derivatives market sentiment is particularly significant given Salesforce stock has been in a sharp uptrend, currently up nearly 40% versus its low in late June.
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www.barchart.comBarchart’s Data Suggests Salesforce Stock Will Rip Higher
Ahead of a major corporate event like quarterly earnings, market participants often read the options market sentiment in terms of the put-to-call ratio, with a reading below 1x interpreted as bullish.
For CRM contracts expiring Aug. 28, that ratio currently sits at 0.85x, with the upper price set at nearly $223, indicating potential for a 6.6% rally on the back of the financial release.
Much of this optimism may be rooted in Salesforce’s valuation. At roughly 20x forward earnings, the company is currently trading decisively below its historical multiple.
Together with a 0.84% dividend yield, CRM stock looks attractive heading into the earnings event.
Why Options Traders Are Bullish on CRM Shares
Options traders remain bullish on Salesforce shares mostly because the firm’s artificial intelligence (AI) powered Agentforce platform is seeing strong enterprise adoption. In fact, CRM is now succeeding in silencing AI disruption fears, which significantly hurt its stock price earlier this year.
Meanwhile, robust cash generation (Q1 free cash flow of $6.6 billion) and improving profitability offer some additional fundamental support.
Note that institutional investors currently hold more than 80% of Salesforce’s shares outstanding, reinforcing that smart money continues to bet big on the company’s long-term prospects.
Salesforce Remains Buy-Rated Among Wall Street Firms
Despite recent gains, CRM shares remain decisively below the price at which they started 2026, making up for a reason why Wall Street analysts believe their rally is not out of steam just yet.
The consensus rating on Salesforce sits at “Moderate Buy” currently, with the mean price target about $252 indicating potential upside of another 20% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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