Unusual Social Activity Around Salesforce.com (CRM) Today

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 17x the normal benchmarked social activity for this time of the day compared to its average of 13.00 mentions/day.
  • CRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $207.7 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.

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More details on CRM:

salesforce.com, inc. provides enterprise cloud computing solutions to various businesses and industries worldwide. Currently there are 23 analysts that rate Salesforce.com a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Salesforce.com has been 4.4 million shares per day over the past 30 days. Salesforce.com has a market cap of $38.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.47 and a short float of 7.8% with 10.52 days to cover. Shares are up 10.6% year-to-date as of the close of trading on Wednesday.

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, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:
  • CRM's revenue growth has slightly outpaced the industry average of 28.1%. Since the same quarter one year prior, revenues rose by 37.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $245.89 million or 34.23% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.01%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 179.7% when compared to the same quarter one year ago, falling from $76.60 million to -$61.09 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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