- Salesforce, Adobe, and HubSpot have all suffered bruising year-to-date stock price declines.
- Despite the drawdown, each offers double-digit revenue growth, sector-leading margins, and outsized earnings growth projections.
- Below is a closer look at why these three companies represent a “buy on the dip” opportunity amid the current market backdrop.
Software stocks have faced significant pressure in 2026, with many enterprise names declining sharply amid concerns over AI disruption, slower deal cycles, and broader market rotation.
Yet leaders such as Salesforce (NYSE:), Adobe (NASDAQ:), and HubSpot (NYSE:) continue to post solid results while ramping up AI monetization. These companies now trade at multi-year low relative valuations despite resilient subscription growth and raised outlooks, creating attractive entry points for long-term investors seeking quality growth at discounted prices.
1. Salesforce
- YTD Performance: -33.3%
- Current Price: $176.53
- Fair Value Estimate: $282.84 (+60.2% Upside)
- Market Cap: $144.4 Billion
Salesforce offers an attractive beaten-down name with clear AI tailwinds. The stock has declined about 33% year-to-date, reflecting broader sector de-rating and some cooling in core growth rates.
Source: Investing.com
However, the company’s Agentforce and related AI innovations are gaining meaningful traction, with rapid adoption in agentic capabilities and strong bookings momentum. Analysts view the current valuation as compelling, with forward multiples well below historical averages for a company of this quality and scale.
Salesforce is anticipated to nearly double its earnings (94.3% EPS growth forecast) and is guiding for 11.0% revenue growth. Analysts have set the consensus price target at $270.93, suggesting a striking 53.5% upside from current levels, while InvestingPro’s AI models predict a 60.2% potential upside. That would bring shares closer to their ‘Fair Value’ price target of $282.84.
Source: InvestingPro
With its next earnings due June 3, 2026, Salesforce has a chance to remind investors of its substantial leadership in cloud and AI-powered CRM solutions.
2. Adobe
- YTD Performance: -29.7%
- Current Price: $246.10
- Fair Value Estimate: $398.38 (+60.1% Upside)
- Market Cap: $99.5 Billion
Adobe is another hard-hit software stock with impressive AI progress in creative tools and a roughly 30% year-to-date decline. The stock is currently at $246.10, well off its 52-week peak of $422.95.
Source: Investing.com
Yet, the company just posted another earnings beat in March, with EPS and revenue both topping forecasts thanks to strong subscription growth. Adobe’s forecasted EPS growth is a solid 40.1%, and its free cash flow yield is an impressive 7.2%, far outpacing most software peers.
Firefly generative AI adoption has been robust: generative credit consumption increased over 45% sequentially, Firefly-related ARR grew 75% quarter-over-quarter, and AI-first applications more than tripled year-over-year.
Source: InvestingPro
The stock’s forward P/E is a modest 10.5x, and with a Fair Value price target of $398.38—offering a 60.1% upside—Adobe looks like a classic case of market overreaction.
3. HubSpot
- YTD Performance: -44.7%
- Current Price: $221.76
- Fair Value Estimate: $303.95 (+37.1% Upside)
- Market Cap: $11.4 Billion
HubSpot stands out as a prime example and one of the harder-hit names in the sector. The stock is down roughly 45% year-to-date amid broader software sector weakness. Shares are at $221.76 as of this morning, miles below their 52-week high of $344.71.
Source: Investing.com
The market’s harsh verdict seems at odds with HubSpot’s “Strong Buy” consensus recommendation. The company has demonstrated strong growth in its inbound marketing and sales platform, with AI integrations enhancing customer acquisition and retention tools.
Recent quarters have shown consistent beats on revenue and earnings, and the upcoming Q1 2026 report (expected on May 7) is anticipated to further validate its trajectory.
Source: InvestingPro
The present valuation of HUBS suggests it is a bargain, as assessed by the AI-backed quantitative models in InvestingPro. There’s a possibility of a 37.1% increase from its current price, moving shares closer to their ’Fair Value’ set at $303.95 per share. This sizable upside, combined with its strong market position and innovative portfolio, makes HubSpot an attractive buy-the-dip option.
Bottom Line
What ties these three software stocks together is not just their brutal drawdowns, but the disconnect between their current prices and the underlying business momentum.
If history is any guide, this kind of pessimism rarely lasts for long in high-quality software. For investors willing to stomach volatility, CRM, ADBE, and HUBS could represent the rare “buy on the dip” opportunity that only comes around once every few years.
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Disclosure: This is not financial advice. Always conduct your own research.
At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
