Investors may wish to take a closer look at US stocks Salesforce (NYSE:CRM) and Pinterest (NYSE:PINS) in July. These two technology leaders offer distinct growth profiles, while trading at particularly attractive levels. Here’s why I think they’re worth of consideration.
Salesforce: the next stage of AI
Salesforce remains the dominant force in customer relationship management software. Its integration of artificial intelligence (AI) — notably through its Einstein platform and recent Informatica acquisition — positions it at the forefront of enterprise digital transformation.
The company is expected to deliver steady earnings growth, with consensus earnings per share (EPS) projected to rise by 10.6% in 2026, 11.9% in 2027, and 14.6% in 2028, averaging just over 12% annually.
Valuation metrics show Salesforce trading at a forward price-to-earnings (P/E) of 23 times for FY26 (the current year), falling to 20.6 in FY27 and 17.9 in FY28, well below its five-year average of over 40 times.
The forward price-to-earnings-to-growth (PEG) ratio is around 1.3. This represents a 26% discount to the information technology sector average. A good sign of value.
Salesforce’s balance sheet is strong. It has $17.4bn in cash and $12bn in debt, resulting in a net cash position that supports ongoing investment and acquisitions.
However, investors should be mindful of the risks. Execution in AI and continued competitive pressure from Microsoft and Oracle remain ongoing challenges.
Nonetheless, analysts see plenty of potential here with the average share price target 34% higher than the current price. It’s certainly worth considering. It’s already part of my portfolio.
Pinterest: AI could be transformational
Pinterest is undergoing a transformation as AI-driven personalisation and content discovery reshape its platform. And it’s going to drive earnings growth.
Consensus estimates call for EPS to rise by 39.8% in 2025, 18.7% in 2026, and 21.2% in 2027, averaging nearly 26.6% per year. This rapid growth is reflected in its forward P/E, which drops from 19.3 in 2025 to 16.3 in 2026 and 13.4 in 2027, with the PEG ratio sitting at just 0.59.
The transformative impact of AI on Pinterest’s user experience and monetisation potential is significant, positioning the company for further re-rating as margins expand.
However, there are risks still. For one, there’s concern that the US economy may be heading towards stagflation. And that’s very important because North America represents 78% of its revenue generation. A slowing US economy, coupled with tariffs, could see an advertising budgets pullback.
Despite this, I’m investing in Pinterest for the long run and I think investors considering it should think that way too. It’s already trading at a low valuation relative to its growth expectations. Maybe a US downturn is already priced in.
The company’s lower revenue per customer outside North America also represents a huge opportunity. With 570m active users worldwide, and just one fifth of them in North America, Pinterest may be looking harder at how it can monetise this huge market.
