Salesforce is back!
Analysts take a positive view of Salesforce
Out of a total of 35 analyst ratings from the past twelve months for Salesforce stock, 30 are “Buy,” 4 are “Hold” and 1 is “Sell.” That averages out to a “Buy” rating for the stock. In recent reports, analysts have come to the same conclusion on average – the bottom line is that the rating for Salesforce stock from the last month is “Buy” (8 Buy, 0 Hold, 0 Sell). An average of 233.75 USD is calculated from the submitted price targets. This means that the share could rise by 54.11 percent from the last closing price (USD 151.68). The recommendation derived from this is “Buy”. In summary, Salesforce thus receives a “buy” rating from the analysts.
Does the share price return meet market requirements?
Salesforce achieved a performance of -34.74 percent in the past 12 months. Similar stocks in the “software” sector have risen an average of 84.28 percent, giving Salesforce an underperformance of -119.02 percent on an industry comparison. The “information technology” sector had a median return of 57.47 percent over the past year. Salesforce was 92.21 percent below that average. The underperformance in both the industry and sector comparisons results in a “Sell” rating in this category.
Investors see a lot of negativity
The Internet can amplify or even turn sentiment. Depending on the intensity of discussion, i.e., the number of word posts on social media and the frequency and depth of the change in sentiment, new ratings for stocks emerge. For Salesforce, we measured below-average activity over the long term in terms of discussion intensity and assign a Sell rating to this signal. The rate of change in sentiment experienced a negative change over this period. We therefore arrive at the overall result of “Sell” for the long-term sentiment picture.
Pricing using the RSI
For stocks, technical analysis also looks at the ratio of upward and downward movements of a price over time and records this for a period of 7 days in the Relative Strength Index. Based on this so-called RSI, Salesforce is currently neither overbought nor oversold with the value 43.66. Therefore, the rating for this signal is “Hold”. If the relative movement is extended to 25 days (RSI25), this results in a value of 54.62 for the stock, which is considered a signal that the stock is neither overbought nor oversold. Accordingly, the rating on this basis is “Hold”. Overall, this results in a rating of “Hold” for the RSI.
Investors are positive
The investor sentiment on Salesforce in the discussion forums and opinion columns of social media is particularly positive overall. This is reflected in the statements and opinions of the past two weeks, which we have evaluated for you to gain another valuation factor for the stock. This showed that positive topics in particular were the focus of discussions in recent days, giving the stock an overall “Buy” rating. Finally, this form of analysis was enriched by concretely calculable trading signals from social media. This revealed 0 sell signals and 4 buy signals. From this picture, in turn, a “Buy” recommendation can be derived at this level. Thus, according to our assessment, a “Buy” is calculated on the point of investor sentiment overall.
Salesforce and the Moving Averages
Trend-following indicators are designed to show whether a security is currently in an uptrend or downtrend (see Wikipedia). The moving average is one such indicator; here we look at the 50-day and 200-day moving averages. First, let’s take a look at the longer-term average over the last 200 trading days. For Salesforce stock, this is currently $174.33. The last closing price (USD 151.68) is thus significantly lower (-12.99 percent deviation in comparison). On this basis, Salesforce thus receives a “sell” rating. Now a look at the shorter-term 50-day moving averageThis currently stands at USD 151.6, so the last closing price is at a similar level (+0.05 percent). This means that a different rating for Salesforce emerges on this shorter-term analysis basis, with the stock receiving a “hold” rating. In sum, Salesforce is given a “hold” rating based on trend-following indicators.