Key points
- Stocks in general are seeing a strong rally, with the technology sector particularly benefiting from the return of risk appetite.
- Salesforce is within striking distance of a new all-time high, but remains attractively valued.
- MongoDB has been on the upswing since 2022 and is also within striking distance of a record close.
- 5 stocks we like better than Salesforce
With the risk appetite that began last November continuing to spread across stock markets, it’s a good time to buy stocks. Growing hopes for a rate cut amid continued signs of curbing inflation are fueling one of the best rallies in recent times. The benchmark S&P 500 index is up more than 20% in three months, and technology stocks, in particular, are enjoying a strong start to the year.
While it can be tempting to jump into anything that moves amid such widespread investor optimism, there are some tried-and-tested ways to find the real standout stocks. Using MarketBeat’s research tools, we can focus on two tech stocks in particular. Let’s pop in and take a closer look.
After enduring a horrible 2022, shares of software giant Salesforce have bounced back through nearly all of 2023. Many of our readers will remember the numerous bullish predictions we’ve made for Salesforce over the past few months. It was time to do it again. The company started this year with a 110% rally under its belt. And with another 10% gain since then, it clearly shows no signs of slowing down.
In what is surely one of the tech sector’s most notable turnarounds, Salesforce stock is now 10% below its previous all-time high. And according to Wall Street analysts, CRM stock should reach that level any day now.
Less than two weeks ago, the team at Bank of America named Salesforce one of its top picks for 2024. With technology as a whole set to benefit from falling rates, indispensable software like Salesforce is poised to do well in terms of economic view. a fresh demand fueled by growth. They also believe that despite the ongoing rally, Salesforce continues to have an attractive valuation relative to its peers.
On Monday, their position was echoed by the Oppenheimer team, who reiterated their Outperform rating on Salesforce, while raising their price target to $325. It goes without saying that if stocks reach this level in the coming weeks, they will hit new all-time highs.
Mongo is another enterprise-grade software platform that is going through something of a renaissance. Like Salesforce, it has been in a strong recovery for over a year and is approaching its previous all-time high. A 35% jump in the last month alone bodes well for the coming weeks, and it’s no surprise that the consensus rating on MarketBeat stands at a Moderate Buy.
While Salesforce might have made Bank of America’s list of top picks of the year, MongoDB topped Baird’s list. The company is approaching its first profitable quarter, with growing expectations that this is the year it makes the leap.
Some concerns have been raised about the company’s slowing revenue growth, but this month’s earnings report, which summarizes the return to risk appetite since last November, should put that to rest. It’s a company known for its high-performance sales team, and since the advent of artificial intelligence (AI), the market need for Mongo’s database software has only become more acute.
Look for the stock to continue rising above the $500 mark, with a run to a 2021 high near $600, a real possibility if it can deliver a strong earnings report. Some concern is warranted by the fact that the stock’s relative strength index (RSI) is at 70, indicating overbought conditions, but such is the bullish momentum in the market right now. We’re inclined to say there’s a lot more room to make this work.
Before you consider Salesforce, you’ll want to hear this.
MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Salesforce wasn’t on the list.
While Salesforce currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
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