Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Salesforce.com ( CRM) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Salesforce.com as such a stock due to the following factors:
- CRM has 15x the normal benchmarked social activity for this time of the day compared to its average of 42.62 mentions/day.
- CRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $318.5 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in CRM with the Ticky from Trade-Ideas. See the FREE profile for CRM NOW at Trade-Ideas More details on CRM: salesforce.com, inc. provides enterprise cloud computing solutions to various businesses and industries worldwide. Currently there are 24 analysts that rate Salesforce.com a buy, 1 analyst rates it a sell, and 4 rate it a hold. The average volume for Salesforce.com has been 5.1 million shares per day over the past 30 days. Salesforce.com has a market cap of $34.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.30 and a short float of 76.8% with 8.70 days to cover. Shares are up 32.1% year to date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Salesforce.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 30.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 785.71% and other important driving factors, this stock has surged by 63.20% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SALESFORCE.COM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SALESFORCE.COM INC reported poor results of -$0.48 versus -$0.02 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.48).
- CRM's debt-to-equity ratio of 0.65 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.40 is very low and demonstrates very weak liquidity.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market, SALESFORCE.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Salesforce.com Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.