Why Buy Salesforce Stock for the Long-term Now?
In fact, the reason investors consider to buy Salesforce stock is because the company is continually looking at ways to expand their product lineup.
When you are buying stocks for the longer term, some basic pre-conditions are almost always constant with your choice. You want that the stock to
- Generate assured gains
- To be a reliable counter
- To have strong business fundamentals
- To clock in regular growth
- To value add existing investment
The reason why you would want to buy Salesforce stock is perhaps all of these a lot more. A rapidly growing company, it excels in providing software to companies to help them maintain client relationship effectively. The software they provide is web based and covers a wide range.
Salesforce has already started making inroads in new areas like digital marketing and data analytics. The company is targeting sustained and well rounded growth to fuel the expansion and even exploring acquisition options.
In fact, it just concluded a deal to buy Demandware, a $2.8 billion e-commerce company. Analysts are extremely bullish on the stock, and some expect the growth momentum to surpass the 20% range going forward. The consensus call is to buy Salesforce stock for sustained long-term value.
If You Buy Salesforce Stock, You Are Betting On A Strong Brand
One of the primary reasons for betting on Salesforce is the absolute value that the stock represents and a lasting brand. This brand is built on a sustained revenue growth track record and undeniable market leadership for almost 17 years. Rather than retaining leadership position in one area, they have spread out their brand of excellence across multiple CRMs and platforms.
Another interesting element is the absolute community spirit that the Salesforce brand represents. While a specific brand is unlikely to promise any sure formula for success, the fact is that the brand goes a long way in ensuring that the true mettle of the brand is borne out and the company can realize its true potential. What makes the Salesforce brand very special is the fact that it has helped its client companies experience success that transcends conventional parameters and incorporates a lasting experience.
- The long list of customers who keep coming back to them
- The sustained earnings growth highlighting steady business
- Collective spirit
- Working in sync with all stakeholders
Therefore given the strong brand that Salesforce represents, the consensus analyst call looking at value-based buys invariably moves towards a buy Salesforce stock call.
Salesforce Innovation at Its Best
One fundamental reason that Salesforce is the toast of the town is because of the robust innovation initiative that the stock represents. If disruptive innovation is about excellence, it is almost as much about Salesforce as well. The brand has never been afraid to innovate and even fail in the bargain.
The fact is that their continuous will to better their product has won them many loyal customers who have been going back to the brand time and again. The idea of a sustained commitment and long-term delivery model has been a deal clincher for this stock for a long while now. Here is a quick synopsis of some of the long-term industry initiatives that Salesforce has launched.
The company was the first to launch cloud-based CRM offering and many at that time believed it would never get past small businesses
- Salesforce was among the first companies to establish PaaS or Platform as a Service
- The first iPhone CRM app, TouchForce is also a Salesforce initiative
- Regarding CRM app, Salesforce also led the pack to launch a social collaboration initiative, Chatter
- The trailhead is a much talked about educational tool. Salesforce looks at using this tool that will help the industry close the supply gap on much-needed development resources.
In fact, there are a lot more to talk about and just on the back of the huge volume of innovations that Salesforce has undertaken, mot investors are bullish on the stock. The idea is when you buy Salesforce stock, rather than short-term instant gains, you have to train your guns on the sustained long-term story as a whole. Look for gains over the longer term instead of immediate impact.
Analyst Recommendations About Buying Salesforce Stock
More than 40 analysts who cover the stock have put a buy Salesforce stock rating, and the 12-month price target for the stock exceeds $95with a few of the forecasts going as high as $110/share too. For a stock that is trading under $70 levels represents a huge upside and given the long reputation of yielding value through innovation and strong delivery lineup.
The 35% upmove that is being expected in this stock price is also a big thumbs up t the company’s continuous initiative in creating long-term sustainable solutions that can also help the broader community over the longer term.
The consensus estimate for earnings next year hovers around $0.98 with quarterly growth of $0.24. The estimate indicates that the company is likely to showcase strong growth in terms of both revenue and profit. In fact the
- Sales going forward might see a jump close to 10%
- Average EPS growth is seen close to 7.5%
It is needless to mention the growth is backed by strong innovation and appropriate product line-up. The company with a market cap exceeding $47 billion is set to gain constructively from recent political developments. In fact, the earnings estimates indicate it poised to scale even higher levels of efficiency.
Their innovation initiatives d not just drive earnings growth but have been instrumental in setting the trend for a broader developmental horizon for sustained changes in the overall business climate. They have been trend initiators with a will to take up risk for bigger gains going forward.
Therefore, it would not be inappropriate to say that you must buy Salesforce stock over the longer term not just because the company is a market leader but also because they have made a name for themselves for sustainable product delivery.