salesforce.com Inc. (CRM:NYE) Analysts rate with a Strong Buy

STA Research
by: STA Research

Based on the salesforce.com Inc. stock forecasts from 25 analysts, the average analyst target price for salesforce.com Inc. is USD 308.19 over the next 12 months. salesforce.com Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of salesforce.com Inc. is Slightly Bullish, which is based on 7 positive signals and 4 negative signals. At the last closing, salesforce.com Inc.’s stock price was USD 163.73. salesforce.com Inc.’s stock price has changed by -3.42% over the past week, -25.68% over the past month and -23.61% over the last year.

Analysts Recent Ratings:

 

Salesforce, Inc. develops customer relationship management software that connects businesses and customers all over the world. Its Customer 360 platform enables customers to collaborate to provide customers with linked experiences. Salesforce, Inc. is based in San Francisco, California, and was founded in 1999.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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