In this article, we will discuss the 5 best DOW stocks to buy according to hedge funds. You can find similar stocks by going to 12 Best DOW Stocks To Buy According To Hedge Funds.
5. Salesforce.com, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 110
Salesforce.com, Inc. (NYSE:CRM) is a leading global provider of customer relationship management (CRM) technology. Insider Monkey found 110 hedge funds long Salesforce.com, Inc. (NYSE:CRM) at the end of the fourth quarter of 2021. The total stakes of these hedge funds came in at $11.45 billion. Hedge funds are making sizeable investments in the company, one of the reasons which make Salesforce.com, Inc. (NYSE:CRM) rank among the 5 best DOW stocks to buy according to hedge funds.
On May 1, Salesforce.com, Inc. (NYSE:CRM) posted market-beating earnings for the fiscal fourth quarter of 2022. The company reported earnings per share of $0.84 and outperformed EPS estimates by $0.09. The company’s quarterly revenues came in at $7.33 billion, up 25.94% year over year, exceeding estimates by $84.15 million.
This May, Salesforce.com, Inc. (NYSE:CRM) announced plans to add Troops.ai to its stronghold. Toops.ai provides revenue communications solutions that help businesses improve sales velocity, forecasting, visibility, and collaboration. Salesforce.com, Inc. (NYSE:CRM) plans on integrating Troops.ai into Slack. The acquisition is expected to close during the first half of the company’s fiscal year 2023.
On May 17, Morgan Stanley analyst Keith Weiss trimmed his price target on Salesforce.com, Inc. (NYSE:CRM) to $291 from $360 but maintained an Overweight rating on the shares. Weiss contended that lowering his price target reflects his revenue estimates for FY23 to decline by 3%, and his rating reflects the company’s strong FY23 pipeline along with sustained business momentum.
As of March 31, 2022, Fisher Asset Management is the most prominent stakeholder in Salesforce.com, Inc. (NYSE:CRM) having stakes worth $3.23 billion in the company.
Here is what Oakmark Funds had to say about Salesforce.com, Inc. (NYSE:CRM) in its “Oakmark Fund” first-quarter 2022 investor letter:
“Over the past 20 years, Salesforce (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software. CRM earns 80% gross margins, grows 20% organically and virtually all of its revenue is recurring. It’s a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 5x next year’s revenues represents a significant discount compared to publicly traded comparables and private market values in the software space. We view this discount as an opportunity to invest in a great business at a good value.
