So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Salesforce has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares for years.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals CRM has made the last year.
The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:
Since March 4th, the stock has attracted 10 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
- 6-month outperformance vs. iShares Expanded Tech-Software ETF (+.21% vs. IGV)
Outperformance is huge for leading stocks.
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Salesforce has been growing revenues and earnings rapidly. Take a look:
- 3-year sales growth rate (+26.58%)
- 3-year earnings growth rate (+1,160%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, Salesforce has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock saw buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
CRM has a lot of qualities that are attracting Big Money. And going back to 2015, it’s made this list 28 times, with its first appearance on 5/31/2016… and gaining 208%. The blue bars below show the times that Salesforce was a top pick:
It’s been an all-star stock for years according to the MAPsignals process. I wouldn’t be surprised if CRM makes additional appearances in the years to come. Let’s tie this all together.
Salesforce continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.
The Bottom Line
The Salesforce rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
Disclosure: the author holds a long position in CRM in personal accounts at the time of publication.
Learn more about the MAPsignals process here.
For a look at all of today’s economic events, check out our economic calendar.