Salesforce: 90% increase since the start of the year. Is there more to come?

Last Updated: 12. Dezember 2023By

Salesforce may not be as familiar to you as Intel, but take a look for yourself โ€“ not only does the chart look strong. Salesforce is an American IT company that offers software and storage solutions for businesses in the field of cloud computing. The company specializes in business solutions such as customer relationship management (CRM) that are made available online.

Explosive Profit Growth of 500% For the 3rd quarter the company reported revenue of $8.72 billion compared to $7.84 billion a year ago. Net income was $1.22 billion versus $210 million a year ago. Earnings per share were $1.26 versus $0.21 a year ago. That is an explosive profit growth of a whopping 500%.

Successful Business Year… In the first nine months, revenue was $25.57 billion compared to $22.97 billion a year ago. Net income was $2.69 billion compared to $306 million a year ago. Diluted earnings per share from continuing operations were $2.76 versus $0.31 a year ago. Even in the nine-month comparison, Salesforce delivered strong numbers.

…Leads to Increased Forecast The company said it expects revenue between $9.18 billion and $9.23 billion, with the midpoint above estimates of $9.21 billion. This significantly increased the annual forecast.

How much potential is there in the stock for you? Conclusion: Is there a nicer chart? The IT stock has done very well this year with a gain of over 90%. Analyst expectations are also positive. 33 of 48 analysts are still recommending buying despite the strong course, 15 want to hold and only one analyst goes for the safe side and finds a sale better. The average analyst price target is $275 (recently set higher). The highest analyst price target was raised from $343 to $369. A look at the valuation, however, shows: With a P/E of over 31 for 2024, the IT stock is no longer a bargain.