Forget, Buy These 4 Big Tech Stocks Instead By StockNews

© Reuters. Forget, Buy These 4 Big Tech Stocks Instead

Despite being a prominent player in the booming tech space, shares of Salesforce (CRM) look extremely overvalued now. So, instead, we think it could be wise to scoop up the shares of the big tech companies Microsoft (MSFT), Cisco (CSCO), Intel (INTC), and International Business Machines (NYSE:) because these companies are well-positioned to capitalize on industry tailwinds.One of the top customer relationship management companies, San Francisco-based, Inc. (NYSE:), reported top- and bottom-line growth for its fiscal first quarter, ended April 30, 2021. And on June 23, the company also announced a significant expansion of its global strategic partnership with, Inc.’s (NASDAQ:) cloud segment—Amazon Web Services, Inc. (AWS)—on June 23. However, the stock has lost 2.1% over the past month and 7.8% over the past nine months to close yesterday’s trading session at $237.58.

On June 30, CRM announced the pricing of an offering of $8 billion of senior notes, the proceeds from which it expects to use to partially fund fees, costs, and expenses related to the acquisition of Slack Technologies, Inc. (NYSE:), among other uses. Analysts expect its EPS to decline 36.8% for the current quarter ending July 31, 2021, and 22.6% in 2022. But, given its weak earnings outlook, the stock looks overvalued at the current price level. In terms of forward EV/S and P/S, CRM’s respective 8.31x and 8.47x are higher than the 4.14x and 3.96x industry averages. However, the tech industry has immense growth potential given the increasing use of advanced technologies across most of the sectors. The increasing demand for IoT and AI-based products and services is further expected to drive the industry forward.

While CRM may not be a good bet right now, we think that one could cash in on the tech industry’s solid growth by betting on established players Microsoft Corporation (NASDAQ:), Cisco Systems, Inc. (NASDAQ:), Intel Corporation (NASDAQ:), and International Business Machines Corporation ( IBM ), which have immense upside potential.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button