The US economy is expected to recover in 2021. Companies that are operating in emerging technology or e-commerce have experienced stellar growth this year. These companies are playing key roles in the ongoing digital transformation that is changing the way people live and work…
The SPDR Portfolio S&P 500 Growth ETF (SPYG), which is an indicator of the performance of growth stocks, has gained 26% so far this year compared to the S&P 500’s gain of 10.9%. Investors are preferring to bet on high growth stocks that have strong long-term potential.
Companies like Salesforce.com, Inc. (CRM), JD.com, Inc. (JD), and Chewy, Inc. (CHWY) have a history of strong performance and they are expected to perform well going into 2021 based on their revenue and earnings growth potential. These companies are market leaders in their respective niches and are constantly evolving their business offerings. Recent weakness could be a buying opportunity.
Salesforce.com, Inc. (CRM)
CRM provides cloud computing solutions for businesses. The company primarily focuses on customer relationship management but also provides solutions for sales force automation, customer service and support, marketing automation, analytics, community management, and more. CRM’s stock has gained 53.4% so far this year.
The company has recently launched Revenue Cloud with a range of features such as multi-cloud billing that will help businesses manage their revenue and provide better service to their customers. The company has also added a feature for real-time sales and service data to their Salesforce Anywhere offering.
For the quarter ended July 2020, the company reported a rise in revenue of 29% compared to the same period last year. The company’s revenue from professional services and other revenue sources saw an increase of 23% year-over-year.
CRM’s trailing-twelve-month revenue grew at a CAGR of 27.2% over the last three years. The company’s five-year average EBITDA year-over-year growth rate is 68.4%. CRM is expected to witness revenue growth of 13.8% for the current quarter and 21.6% in 2021. The company’s EPS is estimated to grow 25.4% in 2021 and at a rate of 16.7% per annum over the next five years.
How does CRM stack up for the POWR Ratings?
A for Trade Grade
B for Buy & Hold Grade
B for Peer Grade
B for Industry Rank
B for Overall POWR Rating
The stock is also ranked #11 out of 48 stocks in the Software – Business industry.
JD.com, Inc. (JD)
JD is an online sales platform that operates in China. The company’s platform offers electronics and home appliances along with other products. JD’s stock has gained 161.4% so far this year.
The company is working on expanding its operations and plans to open five million physical stores over the next three years. The company is bolstering its logistics to provide the same products at the same price to consumers in smaller cities as available for those in tier-1 cities. This move could position JD.com as…
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