After Earnings, Is Salesforce Stock a Buy, a Sell, or Fairly Valued? [Video]

Salesforce CRM released its fourth-quarter earnings report on Feb. 28. With Salesforce’s stock price up 90% over the past year, here’s Morningstar’s take on the company’s earnings and the outlook for its stock.

Key Morningstar Metrics for Salesforce

• Fair Value Estimate: $300.00
• Morningstar Rating: 3-stars
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: High

What We Thought of Salesforce’s Q4 Earnings

• Salesforce continues to perform well in a tight demand environment, with upside versus our expectations on both the top and bottom lines for its fiscal fourth quarter. Guidance was mixed, with revenue slightly worse than we expected, while earnings per share was slightly better.
• The biggest headline is the evolution of Salesforce’s capital allocation strategy, with its buyback program expanded by another $10 billion and the establishment of a $0.40 quarterly dividend. Management was enthusiastic in its discussion of everything artificial intelligence, which we think will be an area of strength, with …