Salesforce.com, Inc. (NYSE: CRM), has long been the pioneer in the field of enterprise software group. It is considered to be the home of top cloud computing stocks. The company’s pillar of strength is its expertise in customer relationship management software (CRM).
The company’s main service is software-as-a-service. This is a type of cloud computing where software can be purchased and accessed over the internet on a subscription basis. However, with the acquisition of MuleSoft this year, Salesforce could soon become the go to vendor for all those digital firms that are looking for full scale digital transformation.
Since the company entered the bull market in March 2009, its share price has risen more than 1,500%. Excellent management, great fundamentals, increasing fund sponsorship are a few factors that can be attributed to its explosive growth. In the past 19 months, the company has recorded 16 monthly price gains.
The company’s year-over-year earnings growth stands at a staggering 65% with an average sales growth of 26%. Morgan Stanley predicts that there will be a nice sales growth with the $6.5 billion acquisition of MuleSoft. According to its analysts, sales could reach or even better the $1 billion mark by 2021. This estimation led Morgan Stanley to raise Salesforce’s price target by 25 points, taking it to178.
Another important factor that potential investors may also like to know is Salesforce has promoted Keith Block to co-CEO position. Benioff, present CEO of the company will now manage technology, stakeholder engagement, culture and marketing while Block will manage the operations, growth strategy and execution departments of the company.
Salesforce earnings are due on August 29 session’s close. Zacks predicts that the earnings per share should be up by 31% making it 47 cents per share and sales should be up by 25%.
According to the above mentioned predictions and reports, Salesforce could be one of the best investment options for both short-term and long-term investors.
So, our advise is “BUY.”
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