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6日前
Salesforce Rising on AI Business, Financial Performance
By: Lucas Downey | November 15, 2024
CRM offers enterprise-level customer relationship management solutions that organize sales data, track leads, forecast opportunities, and apply AI-driven analytics to organizational data. The platform also supports automated quotes, contracts, invoices, and personalized support. Recently, the company announced the ability to build AI agents able to handle many business functions.
In its second-quarter earnings report, CRM delivered revenue of more than $9 billion, which is 8.4% more than a year prior. It generated more than $3.1 billion in operational income from that revenue, which is a 15.5% jump from the year-ago value. Per-share earnings rose 20.8% to $2.56. Also, the company initiated a dividend this year, with the current yield at nearly 0.5%.
It’s no wonder CRM shares are up 19% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.
Big Money Sold on Salesforce
Institutional volumes reveal plenty. In the last year, CRM has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in CRM shares. They reflect our proprietary inflow signal, pushing the stock higher:
Source: www.mapsignals.com
Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Salesforce.
Salesforce Fundamental Analysis
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CRM has strong sales and earnings growth:
• 3-year sales growth rate (+18.1%)
• 3-year sales earnings rate (+590.9%)
Source: FactSet
Also, EPS is estimated to ramp higher this year by +10.4%.
Now it makes sense why the stock has been powering to new heights. CRM has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Salesforce has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last five years, with more potentially on the horizon. The blue bars below show when CRM was a top pick…driving value higher:
Source: www.mapsignals.com
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Salesforce Price Prediction
The CRM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
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DiscoverGold
2月前
Salesforce (CRM) Stock Could Keep Surging After Breakout
By: Schaeffer's Investment Research | October 4, 2024
• CRM broke above above resistance at the $265-$267.50 range
• The 200-day moving average is guiding shares higher
Blue-chip software stock Salesforce Inc (NYSE:CRM) broke above resistance at the $265-$267.50 range late last week, which also coincides with its year-to-date breakeven level. Plus, the shares went on to stage a bounce after a retest of this level.
CRM also just crossed above its 200-day moving average, which is still sloping higher. With these layers of technical support in place, now looks like a good time to bet on the stock’s next leg higher.
In the options pits, Salesforce stock’s 50-day put/call volume ratio of 0.85 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 91st percentile of its annual range, meaning options traders have been much more bearish than usual. The last two rollovers from this area have marked bottoms around it.
Options look like a good way to go when considering CRM, as it’s seeing well-priced premium at the moment. This is per the stock’s Schaeffer’s Volatility Index (SVI) of 24%, which ranks in the low 12th percentile of its 12-month range.
Our recommended November call has a leverage ratio of 11.4, and will double on an 8.9% rise in the underlying shares.
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