Oracle Corporation (ORCL), salesforce.com, inc. (CRM), International Business Machines Corp. (IBM): Buy These Tech Companies On the Dip

Going forward, salesforce.com, inc. (NYSE:CRM) is expected to grow earnings by 28.39%, on average, over the next five years. The company recently purchased ExactTarget, which offers consulting services for digital advertising. Magna Global projects digital advertising to grow by double-digits for the current year. Because of this fact, Salesforce.com is well-positioned going into the end of the year.

Salesforce.com is small, relative to International Business Machines Corp. (NYSE:IBM) and Oracle, giving it more upside potential.

Conclusion

Oracle reported an average quarter. Oracle is a good leading indicator for IBM shareholders. Investors should anticipate a continuous decline in the traditional super-computer mainframe business. Instead, it’s all about services, analytics, and software. IBM and Oracle will do well over the next five years, as they will continue to diversify away from hardware. I anticipate Salesforce.com to grow the most out of the three companies.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Salesforce.com. The Motley Fool owns shares of International Business Machines (NYSE:IBM). and Oracle.

The article Buy These Tech Companies On the Dip originally appeared on Fool.com and is written by Alexander Cho.

Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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