Is Salesforce.com a Buy at All-Time Highs?

With shares of Salesforce.com (NYSE:CRM) trading around $49, is CRM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Salesforce is a provider of enterprise cloud computing and social enterprise solutions. The company provides a customer and collaboration relationship management applications through the Internet or cloud. Salesforce delivers its service through Internet browsers and mobile devices and markets its social enterprise applications and platforms to businesses on a subscription basis. Cloud computing — the use of Internet-based computing, storage, and connectivity technology to deliver a variety of different services — has generated a lot of buzz in recent years.

Salesforce.com recently reported earnings and gave full-year guidance which topped analyst expectations. The company made a profit of $76.6 million, up from a loss of $9.8 million a year ago. Revenue for the period ending in October is expected to be between $1.05 billion and $1.06 billion with a profit of 8 cents or 9 cents per share. “We’re having an outstanding year of growth,” CEO Marc Benioff told analysts on an earnings call.

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