Tactical Europe Portfolio :
performance (alpha) : +2.3% versus Stoxx600NR
Megatrend Europe Portfolio :
performance (alpha) : -7.1% versus Stoxx600NR
Core US Portfolio :
performance (alpha) : -3.1% versus S&P500
Strategic signal split (stocks only)
- Enter Long : 55.6% of stocks with an « enter long » signal in process
- Enter short : 0.6% of stocks with an « enter short » signal in process
- No signal: 43.8% of stocks of which last signal is an « Exit Long » or « Exit Short »
Buy Signal on Salesforce (CRM-US)
Salesforce.com is a $ 222.5 Bn market cap and a a provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM). The Company focuses on cloud, mobile, social, Internet of Things (IoT) and artificial intelligence technologies. The Company's service offerings are configured and integrated with other platforms and enterprise applications. The Company delivers its service offerings via Internet browsers and on mobile devices. Its Customer Success Platform is a portfolio of service offerings providing sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, IoT integration, collaborative productivity tools.
Salesforce recently released its Q1-21 results, delivering a beat on both the top and bottom line and a raise of guidance for Q2 2021 and for FY2022. They also reaffirmed the goal of $50B in yearly revenue by 2026, expressing confidence in continued elevated levels of growth into a vast and expanding TAM of $175B by 2025. CRM mentioned immense opportunities specifically in the Analytics & Integration and the Marketing & Commerce segments which grew at 163% and 36% respectively.
Trading at 8.05x FY22 sales with ~20% revenue growth, CRM offers a compelling valuation among established high growth tech names. The main risk for CRM is the Slack integration, if it does not add to growth but lowers profitability and does not expand their network or improve their cross-selling potential. This would impact the overall company narrative and bring questions to strategic acquisitions going forward. However, this scenario looks already priced in.
The company is expected to post a $25.Bn revenue coupled with a 17.5% Ebit margin in 2021 (01/22). Revenue growth is expected to reach c.20% in the next 3 years.
Short term catalyst : Slack integration.
This signal looks consistent with the US Software sector in Major Bullish Trend.