Salesforce stock: buy or sell?

CRM stock price: $155.16 1.02% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

Benioff's company shares stepped up 1.02% to $155.16 today.

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?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Salesforce.com stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CRM will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Salesforce.com stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for CRM stock in the last month.

The general sentiment of these ratings is bullish for CRM stock, with 14 positive ratings.
Is CRM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-9Jefferies Financial Groupn/aBuy
2019-8-28Credit Suisse Groupn/aBuy
2019-8-23Stifel Nicolausn/aBuy
2019-8-23Stifel Nicolausn/aBuy
2019-8-23Royal Bank of CanadaOutperformPositive
2019-8-23Nomuran/aBuy
2019-8-23Morgan Stanleyn/aOverweight
2019-8-23Monness Crespi & Hardtn/aBuy
2019-8-23Macquarien/aOutperform
2019-8-23JPMorgan Chase & Co.n/aBuy
2019-8-23JMP Securitiesn/aMarket Outperform
2019-8-23Jefferies Financial Groupn/aBuy
2019-8-23Canaccord Genuityn/aBuy
2019-8-23Canaccord Genuityn/aBuy
2019-8-23BMO Capital Marketsn/aOutperform

Salesforce stock analysis

Daily outlook

Shares of the cloud CRM company closed today at $155.16 and stepped up a nice 1.02%.

The cloud CRM company ended today at $155.16 and stepped up a nice 1.02%. Since Sep 11th when CRM stock price broke up the SMA200d line, it gained $5.51 (3.68%). CRM is soaring again after a 3.97% correction from its last top on September 12th at $156.80.

CRM stock chart (daily)

Weekly outlook

Salesforce.com shares appreciated 1.43% this week, ending at $155.16. Late July CRM plunged a frightening -9.79% in just one week. By mid August CRM boosted a wonderful 5.07% in just one week.

If you observe the weekly chart, price is in a simple uptrend, tested $147.74 level and now climbing back aiming its last top at $158.42. Far behind is the all-time high Benioff's company hit late April but price is just -7.40% below that top. This week CRM price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

CRM stock chart (weekly)

Salesforce stock price history

Salesforce stock went public on June 23rd, 2004 with a price of $3.751. Since then, CRM stock surged a 4,037.60%, with an average of 269.20% per year. If you had invested right after CRM's IPO a $1,000 in Salesforce stock in 2004, it would worth $40,376.00 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 $187.90

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 14 price predictions for the cloud CRM company stock posted in the last 30 days:
CRM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-28Credit Suisse GroupSet Price Targetn/a$175.00-
2019-8-23Stifel NicolausReiterates$185.00$195.005.4%
2019-8-23Stifel NicolausRaises Target$185.00$195.005.4%
2019-8-23Royal Bank of CanadaRaises Target$181.00$200.0010.5%
2019-8-23NomuraRaises Target$180.00$185.002.8%
2019-8-23Morgan StanleyRaises Target$178.00$180.001.1%
2019-8-23Monness Crespi & HardtRaises Target$200.00$210.005%
2019-8-23MacquarieRaises Target$184.00$190.003.3%
2019-8-23JPMorgan Chase & Co.Set Price Targetn/a$180.00-
2019-8-23JMP SecuritiesRaises Target$178.00$191.007.3%
2019-8-23Jefferies Financial GroupRaises Target$165.00$171.003.6%
2019-8-23Canaccord GenuityReiterates$175.00$185.005.7%
2019-8-23Canaccord GenuityRaises Target$175.00$185.005.7%
2019-8-23BMO Capital MarketsRaises Target$185.00$188.001.6%
(in average)$180.90$187.904.0%
Moving in a range from $210.00 and $171.00, the price prediction for CRM stock is $187.90. In average, analysts' outlook on CRM price forecast is positive, increasing the target by a 4.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Salesforce.com reported its latest financial data, posting a super good gain for the Earnings per Share (EPS). Experts were expecting $0.23 per share, but Salesforce.com posted $0.37.
CRM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a-0.01n/a
2017-Q3-n/a0.02n/a
2017-Q42017-11-210.370.395.4%
2018-Q12018-02-280.110.1536.4%
2018-Q22018-05-290.180.52188.9%
2018-Q32018-08-290.120.35191.7%
2018-Q42018-11-270.150.2673.3%
2019-Q12019-03-040.230.3760.9%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2019, Salesforce.com annual revenues boosted an astounding 26.74% to $13,282.00 million dollars from $10,480.00 marked in 2018. Improving that, its earnings margin (compared to revenues) escalated to 8.36%, that is $1,110.00 million.

CRM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$4,070 M-$-232.18 M-5.7%-
2014$5,370 M31.94%$-262.69 M-4.9%13.14%
2015$5,374 M0.07%$-262.69 M-4.9%0.00%
2015$6,670 M24.13%$-47.43 M-0.7%-81.94%
2016$6,667 M-0.04%$-47.43 M-0.7%-0.01%
2016$8,390 M25.84%$180 M2.1%-478.76%
2017$8,392 M0.02%$180 M2.1%0.00%
2017$10,480 M24.88%$127 M1.2%-29.03%
2018$10,480 M0.00%$127 M1.2%0.00%
2019$13,282 M26.74%$1,110 M8.4%770.74%

Quarterly financial results

Salesforce.com reported $3,603.00 M in revenues for 2019-Q1, a 6.22% up compared to previous quarter. Reported quarter earnings marked $362.00 million with a profit margin of 10.05%. Profit margin jumped a 6.95% compared to previous quarter when profit margin was 3.10%. When comparing turnover to same quarter last year, Salesforce.com sales marked a dazzling growth and skyrocketed a 28.45%. Looking back to recent quarterly results, Salesforce.com posted 7 negative quarters in a row.
CRM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,390 M-$-9 M-0.4%-
2017-Q3$2,560 M7.11%$18 M0.7%-292.62%
2017-Q4$2,680 M4.68%$51 M1.9%189.71%
2018-Q1$2,805 M4.67%$-27 M-0.9%-151.61%
2018-Q2$3,006 M7.17%$344 M11.4%-1,397.04%
2018-Q3$3,281 M9.15%$299 M9.1%-13.08%
2018-Q4$3,392 M3.38%$105 M3.1%-64.88%
2019-Q1$3,603 M6.22%$362 M10.0%244.76%

Salesforce.com ownership

When you are planning to invest in shares of a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Salesforce.com, 4.59% of all outstanding shares are owned by its staff.

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:

CRMADBEBVSNINTUMSFT
Market cap$136.1 B$136.5 B$7.3 M$70.0 B$1,065.3 B
Total shares877.0 M485.4 M5.1 M260.1 M7,640.0 M
Float shares841.6 M483.7 M2.3 M250.1 M7,520.0 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 selling0.0%0.0%0.0%0.0%0.0%

Salesforce summary

Friday, September 20th, 2019
Open$154.69
Close$155.16
Day range$153.62 - $156.87
Previous close$153.60
Session gain1.02%
Average true range$3.07
50d mov avg$151.54
100d mov avg$153.22
200d mov avg$152.79
Daily patternlb01a
Weekly pattern lb01a

Salesforce.com performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Salesforce.com to Adobe, BroadVision, Intuit, Microsoft, Oracle, and Symantec:
Stock3m6m12m
CRMSalesforce.com-1.07%-3.93%-0.23%
ADBEAdobe-6.04%8.31%7.81%
BVSNBroadVision14.29%-15.79%-10.00%
INTUIntuit3.11%6.91%23.09%
MSFTMicrosoft2.14%19.97%23.96%
ORCLOracle-4.38%2.14%6.33%
SAP-11.05%8.43%-0.41%
SYMCSymantec15.45%5.64%16.29%

Salesforce.com competitors

We picked a few stocks to conform a list of Salesforce.com competitors to watch if you are interested in investing in CRM:

Latest Salesforce stock news