In this article, we discuss the 5 best stocks to buy according to billionaire Chris Rokos. If you want to read our detailed analysis of Rokos’ history, investment philosophy, and hedge fund performance, go directly to 10 Best Stocks to Buy According to Billionaire Chris Rokos.
5. Salesforce, Inc. (NYSE:CRM)
Rokos Capital Management’s Stake Value: $64.7 million
Percentage of Rokos Capital Management’s Portfolio: 2.93%
Number of Hedge Fund Holders: 114
Salesforce, Inc. (NYSE:CRM) is a cloud computing and consulting company. In addition, it provides customer relationship management software and applications. According to Rokos Capital Management’s 13F filings, in the first quarter of 2022, the firm owned 299,350 shares of Salesforce, Inc. (NYSE:CRM), worth $64.7 million. The company represents 2.93% of the fund’s portfolio after it increased its stake by 28% in the first quarter of 2022.
Salesforce, Inc. (NYSE:CRM) reported its first-quarter 2022 earnings in April. The company beat its EPS and revenue expectations by 3.73% and 0.40%, respectively. The company generated a revenue of $7.41 billion, which shows a 24% YoY growth. Salesforce, Inc. (NYSE:CRM)’s free cash flow of $3.50 billion represented a 14% year-over-year growth. On top of that, the free cash flow margin of the company rose by 47.2% in the first quarter of 2022, compared to 24.8% in the previous quarter.
On June 1, Stifel analyst J. Parker Lane lowered Salesforce, Inc. (NYSE:CRM)’s price target to $250 from $300 and kept a Buy rating on its shares. In a research note, the analyst explained that the company “delivered a solid start to the year” and product and geographic diversification gives Salesforce, Inc. (NYSE:CRM) some cushioning against a weakening macro backdrop.
“Salesforce.com Inc. is the dominant provider of customer relationship management software and technology. Salesforce has high retention rates, pricing power, high free cash flow, and a competitive moat. The company continues to execute well. Margins decreased slightly during the fourth quarter but continue to be on path for material expansion over the long term. Salesforce is seeing increased spending as employees are returning to the office, and we believe the global pandemic has only improved its prospects.”