Salesforce stock: buy or sell?
Updated on:
July 16th, 2019
4
Salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management. The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence, and collaborate around sales on desktop and mobile devices, as well as solutions for partner relationship management.
Should I buy Salesforce stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading strategy that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.None of our preferred buy setups matches with Salesforce.com stock situation right now, therefore this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Salesforce.com stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we gathered 15 ratings published for CRM stock in the last 30 days. The general sentiment of these ratings is bullish for CRM stock, with 14 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-6-6 | Credit Suisse Group | n/a | Outperform |
| 2019-6-5 | UBS Group | n/a | Buy |
| 2019-6-5 | Royal Bank of Canada | n/a | Buy |
| 2019-6-5 | Credit Suisse Group | n/a | Buy |
| 2019-6-5 | Bank of America | n/a | Buy |
| 2019-6-3 | JPMorgan Chase & Co. | n/a | Buy |
| 2019-6-17 | Royal Bank of Canada | n/a | Buy |
| 2019-6-11 | UBS Group | n/a | Buy |
| 2019-6-11 | SunTrust Banks | Positive | Buy |
| 2019-6-11 | Sanford C. Bernstein | n/a | Neutral |
| 2019-6-11 | Royal Bank of Canada | n/a | Buy |
| 2019-6-11 | Barclays | n/a | Buy |
| 2019-5-20 | Bank of America | n/a | Buy |
| 2019-4-17 | JPMorgan Chase & Co. | n/a | Buy |
| 2019-3-6 | JMP Securities | n/a | Buy |
Salesforce stock analysis
Daily outlook
Salesforce.com ended today at $157.09 and slightly fell a fatal -1.60%.
Benioff's company shares slightly fell -1.60% to $157.09 today. Since price and SMA200d lines crossed up on June 27th, CRM climbed $8.05 (5.40%). Since SMA100d and SMA200d crossed up on March, CRM price slid a -2.36%. CRM broke out again over $155.75 after a 2.61% correction started on July/3. On April, CRM hit new all time highs, pushing higher previous ATH of $166.99 recorded on March. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
Salesforce.com ended this week at $157.09 and depreciated a disappointing -0.63%. By mid June CRM plunged a frightening -7.51% in just one week. Early June CRM climbed an astounding 6.11% in just one week.
Salesforce.com stock just marked a top under its last top. Athought it's not something to really worring right now, investors should be alerted as this could be a warning for future complications. You should be expectant to Benioff's company price to not slide under , as this would complicate possible price recovery in the short and mid-term. Not so far away is the last price record Salesforce.com marked late April. By mid June CRM price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since SMA20w and SMA40w crossed up by mid March, CRM price slid a -2.74%.
Salesforce stock price history
Salesforce stock went public on June 23rd, 2004 with a price of $3.751. Since then, CRM stock surged a 4,089.10%, with a yearly average of 272.60%. If you had invested right after CRM's IPO a $1,000 in Salesforce stock in 2004, it would worth $40,891.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Salesforce stock historical price chart
CRM stock reached all-time highs on April with a price of $167.56.
Salesforce stock price target is $184.30
How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' CRM stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 14 price predictions for Benioff's company stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-6-5 | UBS Group | Set Price Target | n/a | $190.00 | - |
| 2019-6-5 | Royal Bank of Canada | Set Price Target | n/a | $183.00 | - |
| 2019-6-5 | Credit Suisse Group | Set Price Target | n/a | $175.00 | - |
| 2019-6-5 | Bank of America | Reiterates | n/a | $200.00 | - |
| 2019-6-3 | JPMorgan Chase & Co. | Set Price Target | n/a | $180.00 | - |
| 2019-6-17 | Royal Bank of Canada | Set Price Target | n/a | $181.00 | - |
| 2019-6-11 | UBS Group | Set Price Target | n/a | $190.00 | - |
| 2019-6-11 | SunTrust Banks | Raises Target | n/a | $189.00 | - |
| 2019-6-11 | Sanford C. Bernstein | Set Price Target | n/a | $169.00 | - |
| 2019-6-11 | Royal Bank of Canada | Set Price Target | n/a | $183.00 | - |
| 2019-6-11 | Barclays | Set Price Target | n/a | $182.00 | - |
| 2019-5-20 | Bank of America | Reiterates | n/a | $200.00 | - |
| 2019-4-17 | JPMorgan Chase & Co. | Set Price Target | n/a | $180.00 | - |
| 2019-3-6 | JMP Securities | Reiterates | n/a | $178.00 | - |
| (in average) | $0.00 | $184.30 | 0.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Salesforce.com presented extraordinary results for 2019-Q1 on March. Salesforce.com skyrocketed Earnings per Share (EPS) by 60.90%, beating experts estimates of $0.23. Salesforce.com posted $0.37.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | -0.01 | n/a |
| 2017-Q3 | - | n/a | 0.02 | n/a |
| 2017-Q4 | 2017-11-21 | 0.37 | 0.39 | 5.4% |
| 2018-Q1 | 2018-02-28 | 0.11 | 0.15 | 36.4% |
| 2018-Q2 | 2018-05-29 | 0.18 | 0.52 | 188.9% |
| 2018-Q3 | 2018-08-29 | 0.12 | 0.35 | 191.7% |
| 2018-Q4 | 2018-11-27 | 0.15 | 0.26 | 73.3% |
| 2019-Q1 | 2019-03-04 | 0.23 | 0.37 | 60.9% |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2019, Salesforce.com annual turnover skyrocketed an outstanding 26.74% to $13,282.00 M dollars from $10,480.00 marked in 2018. Improving that, its income margin (compared to sales) escalated to 8.36%, that is $1,110.00 million.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2014 | $4,070 M | - | $-232.18 M-5.7% | - |
| 2014 | $5,370 M | 31.94% | $-262.69 M-4.9% | 13.14% |
| 2015 | $5,374 M | 0.07% | $-262.69 M-4.9% | 0.00% |
| 2015 | $6,670 M | 24.13% | $-47.43 M-0.7% | -81.94% |
| 2016 | $6,667 M | -0.04% | $-47.43 M-0.7% | -0.01% |
| 2016 | $8,390 M | 25.84% | $180 M2.1% | -478.76% |
| 2017 | $8,392 M | 0.02% | $180 M2.1% | 0.00% |
| 2017 | $10,480 M | 24.88% | $127 M1.2% | -29.03% |
| 2018 | $10,480 M | 0.00% | $127 M1.2% | 0.00% |
| 2019 | $13,282 M | 26.74% | $1,110 M8.4% | 770.74% |
Quarterly financial results
Salesforce.com reported $3,603.00 million in sales for 2019-Q1, a 6.22% improvement compared to previous quarter. Reported quarter earnings marked $362.00 M with a profit margin of 10.05%. Profit margin rose a 6.95% compared to previous quarter when profit margin was 3.10%. When comparing sales to same quarter last year, Salesforce.com sales marked a dazzling growth and rocketed a 28.45%. Looking back to recent quarterly results, Salesforce.com posted 7 negative quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $2,390 M | - | $-9 M-0.4% | - |
| 2017-Q3 | $2,560 M | 7.11% | $18 M0.7% | -292.62% |
| 2017-Q4 | $2,680 M | 4.68% | $51 M1.9% | 189.71% |
| 2018-Q1 | $2,805 M | 4.67% | $-27 M-0.9% | -151.61% |
| 2018-Q2 | $3,006 M | 7.17% | $344 M11.4% | -1,397.04% |
| 2018-Q3 | $3,281 M | 9.15% | $299 M9.1% | -13.08% |
| 2018-Q4 | $3,392 M | 3.38% | $105 M3.1% | -64.88% |
| 2019-Q1 | $3,603 M | 6.22% | $362 M10.0% | 244.76% |
Salesforce.com ownership
When you are planning to buy shares of a stock, it's always worth to overview its ownership structure.Salesforce.com shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 4.59% of all shares.
Bearish positions for CRM stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Salesforce.com:
| CRM | ADBE | BVSN | INTU | MSFT | |
|---|---|---|---|---|---|
| Market cap | $121.7 B | $150.7 B | $7.1 M | $72.8 B | $1,050.0 B |
| Total shares | 774.8 M | 488.0 M | 5.1 M | 259.2 M | 7,660.0 M |
| Float shares | 740.8 M | 483.9 M | 2.3 M | 249.6 M | 7,560.0 M |
| - Institutional holdings (%) | 84.8% | 88.9% | 5.3% | 90.0% | 74.7% |
| - Insider holdings (%) | 4.6% | 0.3% | 60.7% | 4.0% | 1.4% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Salesforce summary
| Tuesday, July 16th, 2019 | |
|---|---|
| Open | $159.96 |
| Close | $157.09 |
| Day range | $156.81 - $161.61 |
| Previous close | $159.65 |
| Session gain | -1.60% |
| Average true range | $2.59 |
| 50d mov avg | $154.65 |
| 100d mov avg | $157.53 |
| 200d mov avg | $150.14 |
| Daily pattern | lb01c |
| Weekly pattern | lt01a |
Salesforce.com performance
To better understand Salesforce.com performance you must becnhmark its gains with other related stocks in same sector or industry. We chose Adobe, BroadVision, Intuit, Microsoft, Oracle, and Symantec as the bechmarking frame for Salesforce.com stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| CRMSalesforce.com | 0.71% | 3.00% | 6.96% |
| ADBEAdobe | 14.11% | 24.75% | 19.89% |
| BVSNBroadVision | 19.49% | 8.46% | -32.86% |
| INTUIntuit | 9.16% | 31.80% | 31.52% |
| MSFTMicrosoft | 11.52% | 28.28% | 31.09% |
| ORCLOracle | 7.94% | 19.98% | 22.79% |
| SAP | 21.24% | 29.52% | 17.66% |
| SYMCSymantec | -6.01% | 14.37% | 9.28% |
Salesforce.com competitors
We picked a few stocks to conform a list of Salesforce.com competitors to examine if you are interested in investing in CRM:Latest Salesforce stock news
- Seeking AlphaSalesforce.com: The Tableau Acquisition Is A Game ChangerJune 19, 2019
- Seeking AlphaSalesforce.com Bought Tableau, But You Should Buy MicrosoftJune 11, 2019
- Seeking Alpha5 Excellent Reasons To Buy Salesforce.comJune 10, 2019
- InvestorPlaceSalesforce.com Earnings: CRM Stock Surges After Topping Q1 EPS OutlookJune 4, 2019
- Seeking AlphaSalesforce.com: Management Expects Strong Growth, But Its Stock Is ExpensiveMay 17, 2019