Microsoft, Salesforce Positioned to Modestly Outperform Rising Market
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The Dow Jones has historically risen 172% during bull markets over 60 months. This suggests potential for more gains in the current bull market.
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Microsoft is a top AI stock with strength in software, cloud services, and video games. Revenue is growing double-digits with help from AI.
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Salesforce leads the CRM software market and is growing through digital transformation demand. New AI products present growth opportunities.
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Both Microsoft and Salesforce valuations are reasonable for their growth potential. Their stocks could outperform the Dow Jones over 5 years.
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These are slow-and-steady stocks rather than high-risk, high-reward plays. Any outperformance of the Dow is likely to be modest over the next 5 years.