Salesforce (CRM) Offering Possible 38.89% Return Over the Next 17 Calendar Days

Salesforce's most recent trend suggests a bullish bias. One trading opportunity on Salesforce is a Bull Put Spread using a strike $222.50 short put and a strike $217.50 long put offers a potential 38.89% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $222.50 by expiration. The full premium credit of $1.40 would be kept by the premium seller. The risk of $3.60 would be incurred if the stock dropped below the $217.50 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Salesforce is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Salesforce is bullish.

The RSI indicator is at 55.17 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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3 SaaS Stocks to Consider as the Trend Heats Up
Fri, 29 Jan 2021 17:14:35 +0000
This past year has brought so many changes. The corona pandemic has been the driving force, impacting pretty much every facet of our lives. For many of us, the COVID crisis has pushed work online. The coronavirus pandemic and its effects on the workplace are likely to stay with us, no matter what else happens. The shift of white-collar work to the digital realm, with online offices and virtual workspaces, has been too big to turn back, and its ride-along effects have made a profound impact on both companies and office workers. Working remote has increased flexibility, mobility, and independence for both workers and employers, and neither side is likely to want to give that up completely. All of this makes business software, especially cloud-based SaaS (software as a service) offerings, more valuable than ever. Cloud software provides a wealth of services that remote businesses cannot do without – security, networking, customer management, to name a few – and has made it possible to streamline the shift to remote work. As a result, Software-as-a-Service companies have seen their stock hit a premium, and attract attention from some of Wall Street’s top analysts. With this mind, we've used the TipRanks database to pinpoint three SaaS stocks that match a profile: they all earn Moderate or Strong Buy consensus ratings from the analyst community, and boast double-digit upside potential. A dive into the details will tell us what else makes them so compelling for investors. Box (BOX) We'll start with a content management and file sharing company, Box Inc. This company got its start back in 2005, and now offers enterprise customers a cloud-based platform for business processes, content management, and workplace collaboration. Box’s products include content overview, security and compliance, and IT controls. Box’s revenues have been climbing gradually for the past two years, and that pattern continued through the corona crisis. The most recent quarterly report, for 3Q20, showed $196 million at the top line, for an 11% year-over-year gain. The company’s cash position is solid, with net cash from operations reaching $45.1 million, up a whopping 407% yoy. The company was confident enough, from its revenues and liquidity, to earlier this month announce a $315 million issue of convertible senior notes, due in 2026. Box expects to raise in excess of $300 million from the issue, and will use the funds for debt reduction and general corporate purposes. Covering this stock for Craig-Hallum, analyst Chad Bennett writes, “[We] like BOX as a moderate revenue re-acceleration and moremeaningful operating margin expansion story. The company is quicklymoving up rungs on the ‘rule-of-x’ ladder in its pursuit of 40%+ revenuegrowth plus free cash flow margin. At ~3.8x EV/sales and just above 20xEV/EBIT and P/E, BOX is one of the cheapest names in software and hasplenty of room to appropriately re-rate higher as it moves up this ladder.Looking at our software comp table, we find a select amount of companiesin this multiple range that are growing north of 10%, which we think BOXwill exceed.” To this end, Bennett rates BOX shares a Buy along with a $28 price target. This figure indicates his confidence in a one-year upside of 57%. (To watch Bennett’s track record, click here) Overall, Box gets a Moderate Buy rating from the analyst consensus. The stock has received 7 reviews in recent weeks, breaking down to 5 Buys and 2 Holds. Shares are priced at $17.69 and the $23.17 average price target indicates a 29% one-year upside from that level. (See Box stock analysis on TipRanks) Salesforce.com (CRM) Salesforce is a well-known name in cloud software, as the company was an early leader in the CRM niche – in fact, it took its ticker from its Customer Relationship Management products. Salesforce’s cloud-based software products provide solutions for the customer-facing issues businesses face: tracking sales and commerce, managing databases, customer service, market analytics. A major selling point is scalability; Salesforce software can work with companies of all sizes. In the latter half of 2019, Salesforce predicted that it would double its $138 billion market cap by 2024. So far, the company is well on its way to realizing that goal – the market cap has increased by 50% since then. In making those gains, Salesforce stock has bounced back strongly from its ‘corona recession’ low point reached last March Strong revenue growth has gone hand-in-hand with the share gains. In 3Q20, CRM showed $5.42 billion in total revenues, up 20% year-over-year. EPS came in at $1.15, well above the 75 cents expected. The company described the quarter as ‘another record,’ and raised its FY21 guidance to $21.1 billion and set the FY22 guidance at $25.5 billion. In addition to the strong financial results, there are two other points of note here. First, Salesforce announced that it intends to purchase Slack, the work communication app, for $27.7 billion. And second, Salesforce was added to the Dow Jones Industrial Average. Kash Rangan, 5-star analyst with Goldman Sachs, covers Salesforce, and he is impressed. Noting that the business cloud software market is a trillion-dollar field, Rangan says, “Salesforce remains poised to be one of the most strategic application software companies in the cloud industry. In spite of its size at about $25B estimated revenues in FY22, the company's current revenue performance obligation is organically growing in the high teens.” That growth underlies Rangan’s Buy rating and $315 price target. At current levels, his target implies an upside of 39% on the one-year horizon. (To watch Rangan’s track record, click here) How does Rangan’s bullish bet weigh in against the Street? It appears the Goldman Sachs analyst is not the only one enthusiastic on this software giant’s prospects, with TipRanks analytics demonstrating CRM as a Strong Buy. Out of 28 analysts polled in the last 3 months, 21 say Buy, while 7 suggest Hold. With a return potential of nearly 21%, the stock’s consensus target price stands at $275.44 (See CRM stock analysis on TipRanks) Splunk, Inc. (SPLK) Last but not least we have Splunk, which offers a variety of business services on the cloud. The flagship product is data-to-everything, a single, scalable platform for investigating, monitoring, analyzing, and acting on data. Splunk’s production interfaces are browser style, intuitive, and easy to learn, making it simple for customers to collate and use the collected aggregated information in their databases. The most recent quarterly report, for Q3 of last year, showed $558 million at the top line, down 10.8% yoy, but up 13% sequentially. This result was below the Wall Street estimates, which had expected revenues of $613 million. Drilling down into the quarterly data, we find that Splunk reported $145 million in cloud revenues, for an 80% yoy gain, and signed 444 new enterprise customers during the quarter. In another bright spot, recurring revenue also showed strong growth, with cloud ARR, at $630 million, up 71% from the year-ago quarter. Overall, the company saw annual recurring revenue grow by 44% since last year. Needham’s 5-star analyst Jack Andrews reviewed Splunk, and despite the recent quarterly miss, he sees strong reason to believe in the company. “In our view, Splunk represents one of the few open-ended growth stories in technology, since the more customers use the company’s software, the more those customers want to use it. We view Splunk as an industry leader with strong products attacking a huge market opportunity,” Andrews opined. Andrews rates the stock as a Buy, and his $275 price target indicates a possible growth of 59% for the year ahead. (To watch Andrews’ track record, click here) Overall, there are 28 recent reviews on record for Splunk, with a breakdown of 18 Buys and 10 Holds giving the stock a Moderate Buy analyst consensus rating. The shares have an average price target of $206.35, suggesting ~23% upside from the trading price of $167.66. (See SPLK stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

7 Tech Stocks That Could Be the Future FAANG
Fri, 29 Jan 2021 14:21:48 +0000
A few months ago, I began prodding around the idea of, “What are the future FAANG stocks?” We’ve seen Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and other tech stocks swell from modest winners to worldwide behemoths. These stocks went from $100 billion to $1 trillion in market capitalization. So many people talk about what it would be like if we had bought Apple in the 1980s or Amazon in 1999. While anyone who did and was able to hold on until now is ridiculously rich, they also sat through a ton of volatility. InvestorPlace – Stock Market News, Stock Advice & Trading Tips Further, investors could have waited until after Apple’s iPhone moment or Amazon’s clear dominance of e-commerce and still made a 10x or more return on their investment. Don’t believe me? Apple is up over 1,000% over the past decade, while Amazon is up 1,760%. Over just the last five years — when it was absurdly clear these two were established leaders — Apple and Amazon are up 463% and 442%, respectively. That led me to ponder, what are the next tech stocks that could become new FAANG leaders? Specifically, I am looking for companies in the $50 billion to $300 billion market cap range that can go to $400 billion to $1 trillion or more. It’s an admittedly wide range, but who cares — these winners are right under our noses. Let’s look at seven tech stocks: 7 Safe Stocks to Buy for Solid Returns in Tumultuous Times PayPal (NASDAQ:PYPL) Salesforce (NYSE:CRM) Nvidia (NASDAQ:NVDA) Advanced Micro Devices (NASDAQ:AMD) Roku (NASDAQ:ROKU) Shopify (NYSE:SHOP) Adobe Systems (NASDAQ:ADBE) Tech Stocks to Buy for Future Gains: PayPal (PYPL) Source: JHVEPhoto / Shutterstock.com Current Market Cap: $295 billion Many investors have continued to underestimate PayPal. When it comes to FAANG tech stocks in their younger years, that seems to be a staple observation of them as well. However, PayPal has found a way to become a payment juggernaut. While sending money to friends and family is free and convenient, that’s simply one part of the ecosystem. The company also makes a sliver of sales when involving another business or merchant. It’s become a safe, trusted and convenient way for businesses to sell online or to make subscriptions a piece of cake. PayPal’s acquisition of Venmo and Honey have only added to those layers of engagement, while e-commerce will continue to be the main catalyst behind its growth. For those looking at tech stocks, the power and trend of e-commerce doesn’t need to be explained. Lastly, PayPal’s now in the cryptocurrency game, allowing customers to buy and sell Bitcoin, Bitcoin Cash, Etherium and Litecoin. Maybe PayPal won’t be able to collect its current “fee” — read: commission — on these transactions forever, based on how stock commissions vanished almost overnight in the brokerage industry. However, for now it should act as an additional growth catalyst. Bonus: At a $100 billion market cap, Square (NYSE:SQ) could also be a consideration as a member of new FAANG tech stocks in this respect. Salesforce (CRM) Source: Bjorn Bakstad / Shutterstock.com Current Market Cap: $206 billion. It should go without saying that given the massive gains the stock market has registered over the past nine months, the ideal scenario would be a sizable correction for several of the stocks on this list. However, that doesn’t apply to all of them. Take Salesforce for example. This company keeps on printing money as revenue continues to chug higher. For all the doubt that Salesforce has endured over the years, it has done quite well. It doesn’t seem like management plans on stopping, either. For instance, management is looking to generate $60 billion in revenue by 2034. Most recently, it aims to scoop up Slack (NYSE:WORK), growing its workstation presence and scaling up its fight against Microsoft (NASDAQ:MSFT). 8 Cheap Stocks to Buy With Your Next Stimulus Check As we are talking about pullbacks, Salesforce is a great example. At the recent low, shares were 25% off the highs. That seems like a great opportunity for a company that continually sports 20%-plus revenue growth. Nvidia (NVDA) Source: Sundry Photography / Shutterstock.com Current Market Cap: $335 billion Admittedly a bit larger than what we were looking for, Nvidia needs to be included on this list. Almost every major technological trend is growing in demand. More internet traffic is creating strain in the cloud, increasing demand for edge-cloud computing. More data is creating more need for datacenters. Increasing self-driving vehicle capabilities demand more computing power. Better computers demand better graphics. The list goes on and on and Nvidia is there at every turn. The company’s products cater to multiple end markets with impressive secular growth. That’s why, despite the pandemic, Nvidia saw such an extreme acceleration in both earnings and revenue. Its savvy M&A strategy has allowed it to add high-quality names like Mellanox at reasonable valuations. Now Nvidia is going after Arm, a massive $40 billion deal. Nvidia is already nearing an unstoppable state, but with Arm it would be a juggernaut. From a pure antitrust perspective, Nvidia should be fine. However, this “juggernaut” position might cause some hiccups. Either way, this is a high-quality name that will only grow in size over time. Advanced Micro Devices (AMD) Source: Sundry Photography / Shutterstock.com Current Market Cap: $111.5 billion For Nvidia’s smaller sibling, we have Advanced Micro Devices. At about one-third the size, AMD has quickly climbed the ladder while drastically improving its financials. CEO Lisa Su has orchestrated one of the most impressive comeback stories in the stock market. Once left for dead, AMD was trading firmly below the $2 mark in 2016. Now sporting a 52-week high of $99-and-change, the leadership has been stellar. Like Nvidia, AMD is situated in multiple secular growth themes as rising demand in technology results in rising demand for AMD. Also like Nvidia, AMD saw a massive rise in revenue and profit during the pandemic. In one last final comparison to Nvidia, AMD is also working to close a large acquisition. In October, the company agreed to acquire Xilinx for $35 billion. 9 Stocks Selling at a Discount Right Now While it would require years worth of more growth, it’s not hard to imagine AMD growing to the size of Nvidia ($300 billion). Eventually clearing this level could put it on the lower end of the FAANG status in terms of its size. Roku (ROKU) Source: jejim / Shutterstock.com Current Market Cap: $53 billion Roku is a tough one, because it’s certainly the smallest name on this list (by a lot) and it just went on a massive rally. Shares are up 90% over the past three months, as Roku has climbed from a market cap of just $28 billion to where it is today. Additionally, investors just don’t understand this company. They still think it’s going head-to-head with Amazon with its stick players. While that’s kind of true, the story behind Roku isn’t the hardware — it’s the platform. Roku doesn’t care if it’s making money on the hardware. Instead, its focus is on the platform, where it collects fees from content providers and on ad revenue from its free Roku channel. In that respect, growth continues to explode. Analysts expect roughly 50% revenue growth this year, followed by 40% growth in 2021 and 36% growth in 2022. Respectfully, I believe that may be conservative. Bulls will acknowledge that a pullback may be in order (and a potentially large one at that). However, I don’t think the top is in for Roku. For AMD I mentioned the “lower end of the FAANG status,” which would be Netflix (NASDAQ:NFLX). Currently, that’s a $250 billion market cap and remember, NFLX is at a new high. I could see a scenario where Roku pulls back 20% to 25% — giving it a roughly $40 billion market cap — and ultimately roaring on to a $200-plus billion entity. Shopify (SHOP) Source: justplay1412 / Shutterstock.com Current Market Cap: $145 billion There is one problem with Shopify and several other names on this list: The rallies. While the massive rallies great for long-term investors, it makes the stocks susceptible to large pullbacks as well. If and when we get those declines, that’s investors’ opportunity to pounce. For Shopify, the bullish reasoning is multifold. First, Shopify is riding a much large trend — e-commerce — and therefore will continue to benefit from robust growth. When the coronavirus hit, sales were not negatively impacted. Instead, merchants flocked to its platform, driving Shopify’s revenue higher. Second, it’s building out the anti-Amazon business platform — giving merchants big and small power and control of the customer experience. Now the reward here is massive, as Shopify builds out multiple business segments likes shipping, credit, Shopify Pay and others. However, the risk is present as well. That is, can these companies that crave independence from Amazon delivery quality experiences for the customer? In the end, businesses and merchants are at least willing to try. In December 2019 I said investors could buy Shopify despite its lofty valuation. My argument centered on its valuation, saying this name could go from a $40 billion market cap to a $100 to $120 billion market cap in a decade. 7 Safe Stocks to Buy for Solid Returns in Tumultuous Times It was not obvious that the more than tripling in its value would take place in just a few months. In the long, long run, it’s not hard to imagine this name being significantly higher. Adobe Systems (ADBE) Source: r.classen / Shutterstock.com Current market cap: $228 billion Last but not certainly not least is Adobe. This company does a lot more than just Flash or Photoshop. It’s become a mainstay in e-commerce while also becoming a beacon in the graphics, digital and creative landscape. Find me a freelance graphic designer who’s not using Adobe. The stock has quietly racked up enormous gains as well. Adobe is up 140% over the past three years and 430% over the past five years. Over the last decade, the stock has rallied more than 1,300%, as its market cap was around $16 billion just 10 years ago. That’s some impressive action and Adobe doesn’t show many signs of letting up. Analysts expect double-digit earnings and revenue growth this year and next year, while the company gross margins remain solidly above 85%. While its top-line margins have been steady, its bottom-line profit margins have been soaring. Adobe is quickly yet quietly becoming a technology juggernaut right in front of us. Like some others on this list, the stock has been consolidating nicely over the past six months or so. Let’s see if this name can resolve to the upside. On the date of publication, Bret Kenwell held a long position in AAPL, ROKU, CRM and NVDA. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post 7 Tech Stocks That Could Be the Future FAANGÂ appeared first on InvestorPlace.

3 Top Stocks in the Work-from-Home Industry
Fri, 29 Jan 2021 13:00:00 +0000
Many of those small business applicants were people looking to fire up a self-employment side-gig from home. Three companies to bet on because of their connection to the trend are salesforce.com (NYSE: CRM), Pinterest (NYSE: PINS), and Wix.com (NASDAQ: WIX). Salesforce is best known for its core customer relationship management (CRM) software, but as it was a pioneer of cloud computing (a service handled at a remote data center and delivered via an internet connection), it has some built-in work-from-home capabilities already.

Young Kenyan entrepreneur explains why he admires Bill Gates and Warren Buffett
Fri, 29 Jan 2021 11:00:00 +0000
Zagace Founder & President, Mubarak Muyika, joins ‘Influencers with Andy Serwer' to discuss his biggest role models in business.

Here's Why This $27.7 Billion Acquisition by Salesforce.com Was Brilliant
Thu, 28 Jan 2021 18:00:00 +0000
In early December, salesforce.com (NYSE: CRM) announced that it would acquire workplace communication tool Slack Technologies (NYSE: WORK) for roughly $28 billion. On this episode of Fool Live that aired on Dec. 2, 2020 “The Wrap” host Jason Hall and Fool.com contributor Danny Vena discuss the acquisition and why it's a brilliant move by Salesforce. A lot of interest in the Q&A here, Salesforce, ticker CRM, making the big deal to buy ticker, W-O-R-K which is Slack.

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