Salesforce.com remains compelling
In its most recent quarterly earnings release, salesforce.com, inc. (NYSE:CRM) was able to grow its revenues by 28% year-over-year. The growth was primarily driven by the subscription and support side of the business. In the most recent quarter, the company reported $842 million in revenues from subscriptions, which grew by 28.5% year-over-year. The company also grew its professional services segment by 25% year-over-year, though the professional services segment only represents 5.65% of total revenue. To generate further revenue from professional services, salesforce.com, inc. (NYSE:CRM) recently bought out ExactTarget Inc (NYSE:ET). ExactTarget generated $292 million in revenue during the 2012 fiscal year and has been able to grow sales by 43.52% on average over the past five years. The acquisition of ExactTarget Inc (NYSE:ET) will be strategically valuable for the company.
Analysts on a consensus basis anticipate salesforce.com, inc. (NYSE:CRM) to grow its earnings by 28.39% on average over the next five years. The company trades at a 6.8 price-to-sales ratio, which is a little bit above average. The high price-to-sales ratio is driven by the high rate of growth that is anticipated from the company. I believe this company will continue to be a compelling investment opportunity going forward.
Accenture a compelling investment opportunity
Accenture Plc (NYSE:ACN) is a global outsourcing company. It also provides management consulting services and technology services. In its most recent quarterly earnings report, the company was able to grow its outsourcing revenues by 9% year-over-year in the first quarter of 2013.
The company is primarily growing net income through small amounts of cost cutting and modest revenue growth from the United States. It is projected to grow its earnings by 11.62% on average over the next five years.
The company trades at a 17.2 earnings multiple and pays its investors a 1.98% dividend yield. It is slightly down by 5.59% from its 52-week highs; with the recent market pull-back, this company is a buy on the dip.
Conclusion
I believe big data, organizational structuring, and outsourcing will be some of the largest trends going forward. Investors should look to invest into International Business Machines Corp. (NYSE:IBM), salesforce.com, inc. (NYSE:CRM), and Accenture to capitalize on these three growing trends in business.
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The article Six Future Trends that Investors Cannot Ignore originally appeared on Fool.com.
Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Accenture and Salesforce.com. The Motley Fool owns shares of International Business Machines (NYSE:IBM).. 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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