TheStreet's Quant Ratings stock-modeling service is reaffirming its "Buy" recommendation on Salesforce.com (CRM) , which is Thursday's "Stock of the Day" at our premium Web site Real Money. In fact, CRM has rallied some 29% in the six months since we upgraded the stock to a "Buy" from a "Hold" on March 1.
Quant Ratings evaluates thousands of stocks on a daily basis using a quantitative model that combines fundamental analysis of a firm's latest financial statements with technical analysis of a stock's price moves.
So far, our model views CRM's Thursday morning pullback as an opportunity to buy a good stock at a better price (down about 2.4% on the session as of 11:30 a.m. ET). However, CRM's technically weak performance could place the name in jeopardy for a downgrade if it persists long enough.
Below is an excerpt from Quant Ratings' latest analysis of CRM (or you can view our full analysis here):
We rate Salesforce.com as a 'Buy,' with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses and should give investors a better performance opportunity than most stocks we cover.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Quant Ratings objectively analyzes stocks according to their risk-adjusted total-return prospects over a 12-month horizon. Ratings can differ from Jim Cramer's view of a stock or the view of other columnists on TheStreet.