5 Tech Stocks With Biggest Upside

In this article, we discuss the 5 tech stocks with the biggest upside. If you want to read about some more tech stocks with the biggest upside, go directly to 12 Tech Stocks With Biggest Upside.

5. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117   

Salesforce, Inc. (NYSE:CRM) provides customer relationship management technology that brings companies and customers together worldwide. On November 29, Salesforce revealed that its customers drove more than 115 million orders in November. The digital sales of the company’s Commerce Cloud grew 7% year over year on Thanksgiving, 14% on Black Friday and 10% on Cyber Monday.

On December 5, Credit Suisse analyst Phil Winslow maintained an Outperform rating on Salesforce.com, inc. (NYSE:CRM) stock and lowered the price target to $225 from $250, noting that the company reported solid third-quarter results on the income statement. However, while cRPO growth of 12% year-over-year was consistent with guidance and consensus of 12%, it included 100 bps of incremental FX headwind.

At the end of the third quarter of 2022, 117 hedge funds in the database of Insider Monkey held stakes worth $8.2 billion in Salesforce, Inc. (NYSE:CRM), compared to 116 in the preceding quarter worth $7.9 billion. 

In its Q3 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Salesforce, Inc. (NYSE:CRM) was one of them. Here is what the fund said:

“Salesforce, Inc. (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software over the past 20 years. The company earns 80% gross margins and grows 20% organically. Plus, virtually all of its revenue is recurring. We see Salesforce as a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability and capital return, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 3.9x next year’s revenues represents a significant discount compared to publicly traded peers and recent private market values in the software space that have similar growth profiles. We view this discount as an opportunity to invest in a great business at a good value.”