Salesforce Ltd. (CRM) keeps riding a wave of strong financial performance and demand.
CRM offers enterprise-level customer relationship management solutions that organize sales data, track leads, forecast opportunities, and apply AI-driven analytics to organizational data. The platform also supports automated quotes, contracts, invoices, and personalized support. Recently, the company announced the ability to build AI agents able to handle many business functions.
In its second-quarter earnings report, CRM delivered revenue of more than $9 billion, which is 8.4% more than a year prior. It generated more than $3.1 billion in operational income from that revenue, which is a 15.5% jump from the year-ago value. Per-share earnings rose 20.8% to $2.56. Also, the company initiated a dividend this year, with the current yield at nearly 0.5%.
It’s no wonder CRM shares are up 19% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. In the last year, CRM has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in CRM shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Salesforce.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CRM has strong sales and earnings growth:
Source: FactSet
Also, EPS is estimated to ramp higher this year by +10.4%.
Now it makes sense why the stock has been powering to new heights. CRM has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Salesforce has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last five years, with more potentially on the horizon. The blue bars below show when CRM was a top pick…driving value higher:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The CRM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds positions in CRM in personal and managed accounts at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.
Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.