Personal Finance

Is Salesforce a Good Buy for 2017?

CRM Chart

Much of the stock market has rallied following the presidential election, but software company (NYSE: CRM) has declined nearly 10%. It's been an up-and-down type of year for shareholders, but 2017 may bring better times.

Data by YCharts .

2016 in review


Image source: Salesforce.

The expansion efforts have kept profitability muted, and that has helped keep a cap on the stock this past year. The company dipped slightly into the red during the last quarter, which has contributed to the most recent decline. However, the company expects 2017 to be a landmark year.

An exciting year ahead?

On the last quarterly call, CEO Marc Benioff was excited to announce that his company expects its first $10 billion revenue during the upcoming year. If it materializes, that would be a 21% increase over what the current year is expected to bring in.

Those figures, should they transpire, would amount to yet another slowdown in annual revenue growth. Double-digit growth is nothing to balk at, though, especially for a company as large as Salesforce.

Chart by author. Data source: Salesforce quarterly earnings reports.

The company will release more details on its outlook during its fourth-quarter call, likely due out in February. But considering the year the stock just had in spite of business growth, the company's acquisitions setting it up for further expansion, and management's outlook, 2017 looks like it will be a good year for Salesforce.

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Nicholas Rossolillo has no position in any stocks mentioned. The Motley Fool recommends Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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