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10 Stocks Leading the Stock-Market Rally

BOSTON ( TheStreet) -- The S&P 500 has rallied 8.3% so far this month, led by the following 10 stocks. Some have run too far, too fast, overshooting analysts' price targets, and now look susceptible to a sell-off. Others are poised to extend gains. Below, the stocks are ordered by their return since Sept. 1. Median targets and expected returns are also included.

10. Salesforce.com (CRM) sells relationship management software. Its stock has rallied 10% in Sept., overshooting analysts' median target of $112.58. The stock is now overpriced and due to fall 7%. Salesforce.com's second-quarter profit fell 30% to $15 million, or 11 cents a share, as revenue advanced 25% to $394 million. The operating margin narrowed from 9.3% to 7.5%. Salesforce.com carries $742 million of cash and $461 million of long-term debt.

Salesforce.com's stock trades at a trailing earnings multiple of 208, a forward earnings multiple of 77, a book value multiple of 12 and a cash flow multiple of 44 -- 542%, 193%, 134% and 130% premiums to software industry averages. The stock's PEG ratio, a measure of value relative to predicted long-run growth, of 2.4 signals a 140% premium to fair value. Salesforce.com has outstanding growth rates, but is overpriced based on all valuation metrics.

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