Salesforce is the IBD Stock Of The Day as the maker of customer relationship management software flirts with a buy point. CRM stock has been on a tear this year.
On the stock market today, CRM stock rose 1.7% to close at 201.18. With the advance, it cleared a 200.10 buy point out of a flat base, based on IBD trading principles.
CRM stock also is above a 200.22 entry from three-weeks-tight pattern, according to IBD MarketSmith charts.
Year to date, CRM stock is up more than 51%.
CRM Stock Rockets After Earnings Report
On March 2, Salesforce stock broke out of a cup-with-handle base at a buy point of 178.94, MarketSmith charts show. The breakout occurred after Salesforce delivered a beat-and-raise report for its fiscal fourth quarter.
The enterprise software firm said its adjusted earnings rose 100% to $1.68 per share in the quarter ended Jan. 31. Revenue rose 14% to $8.38 billion.
Meanwhile, Salesforce has been tussling with activist investors who are pushing for changes at the company.
AI Could Improve Company's Offerings
Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce.
Jefferies analyst Brent Thill sees Salesforce getting a boost from its efforts in generative artificial intelligence.
In a note to clients last week, Thill said generative AI will enhance productivity for customers and will allow Salesforce to raise prices.
"While still early days in terms of adoption, Salesforce's AI vision impressed both the partners and customers we spoke to," Thill said. He rates CRM stock as buy with a price target of 250.
Salesforce Is A Top 2% Stock
CRM stock holds an IBD Composite Rating of 98 out of a best-possible 99, according to IBD Stock Checkup. That means it ranks in the top 2% of stocks in key fundamental and technical metrics over the past 12 months.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
CRM stock has an IBD Relative Strength Rating of 91 out of 99. Also in its favor, its relative strength line has been rising as it outperforms the S&P 500 index.
Salesforce is on four IBD stock lists: IBD 50, Big Cap 20, Leaderboard and Tech Leaders.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
