TRENDING KEYWORDS
Packaged Software Stocks are Among the Highest Rated Stocks
The software industry has performed extremely well over the last couple of years. Many of the stocks are among the highest rated when it comes to strong fundamentals and the price performance reflects that.
Looking through a bunch of weekly charts recently, there were two software companies that really jumped out at me. Intuit (INTU) and Salesforce.com (CRM) both jumped out, but for different reasons. Intuit was overbought and has pulled back a little over the last few weeks after it hit the upper rail of a trend channel. The pullback has been just enough to move the stock out of overbought territory based on the weekly stochastic indicators and the 10-week RSI.
The chart for Salesforce got my attention for the opposite reason. The stock peaked in August and has been falling since then. The weekly stochastic indicators recently reached oversold territory for the first time in a number of years. I also couldn’t help but notice that the indicators have just made a bullish crossover.
If we look at the fundamental and technical indicators on the Tickeron Screener, both companies do well on the technical side with both getting four bullish signals. Intuit does have one bearish signal and Salesforce has two bearish signals. Both stocks have received bullish signals in the MACD indicators and the Momentum Indicator and all of the signals have come within the last three days.
On the fundamental side, Intuit gets three positive readings and no negative readings. Salesforce gets two positive readings and three negative readings. Despite having more negative readings than positive readings, Salesforce gets positive readings in two categories that I value greatly—the Profit vs. Risk Rating and the SMR Rating. Intuit gets positive readings in both of those categories as well and it gets another positive reading from its Valuation Rating.
The companies are scheduled to report earnings toward the end of February and beginning of March. Salesforce’s earnings are expected to grow by 13.6% compared to the same quarter one year ago while revenue is expected to jump 17%. Intuit’s EPS is expected to increase by 10.3% and its revenue is expected to grow by 15.2%. The earnings and revenue growth have been big drivers in the rallies for these stocks over the last few years. As it stands now, analysts expect their growth to continue.
Here is the complete comparison between Salesforce and Intuit from Tickeron.
CRM vs INTU: Comparison
Stock price -- (CRM: $162.46 vs. INTU: $406.42)
Brand notoriety: CRM and INTU are both notable
Both companies represent the Packaged Software industry
Current volume relative to the 65-day Moving Average: CRM: 98% vs. INTU: 179%
Market capitalization -- CRM: $158.7B vs. INTU: $109.6B
CRM [@Packaged Software] is valued at $158.7B. INTU’s [@Packaged Software] market capitalization is $109.6B. The market cap for tickers in the [@Packaged Software] industry ranges from $2T to $0. The average market capitalization across the [@Packaged Software] industry is $6.2B.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CRM’s FA Score shows that FA rating(s) are green while INTU’s FA Score has green FA rating(s).
- CRM’s FA Score: , .
- INTU’s FA Score: , .
According to our system of comparison, INTU is a better buy in the long-term than CRM.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CRM’s TA Score shows that TA indicator(s) are bullish while INTU’s TA Score has bullish TA indicator(s).
- CRM’s TA Score: , .
- INTU’s TA Score: , .
According to our system of comparison, CRM is a better buy in the short-term than INTU.
Price Growth
CRM (@Packaged Software) experienced а +4.41% price change this week, while INTU (@Packaged Software) price change was +12.17% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was +0.72%. For the same industry, the average monthly price growth was 0.00%, and the average quarterly price growth was 0.00%.
Reported Earning Dates
CRM is expected to report earnings on Aug 31, 2022.
INTU is expected to report earnings on Aug 23, 2022.
Industries' Descriptions
@Packaged Software (+0.7% weekly)
Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
CRM vs INTU: Fundamental Ratings
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
INTU's Valuation (58) in the Packaged Software industry is in the same range as CRM (75). This means that INTU’s stock grew similarly to CRM’s over the last 12 months.
INTU's Profit vs Risk Rating (33) in the Packaged Software industry is in the same range as CRM (52). This means that INTU’s stock grew similarly to CRM’s over the last 12 months.
CRM's SMR Rating (87) in the Packaged Software industry is in the same range as INTU (88). This means that CRM’s stock grew similarly to INTU’s over the last 12 months.
INTU's Price Growth Rating (62) in the Packaged Software industry is in the same range as CRM (64). This means that INTU’s stock grew similarly to CRM’s over the last 12 months.
CRM's P/E Growth Rating (5) in the Packaged Software industry is somewhat better than the same rating for INTU (40). This means that CRM’s stock grew somewhat faster than INTU’s over the last 12 months.
INTU's Valuation (58) in the Packaged Software industry is in the same range as CRM (75). This means that INTU’s stock grew similarly to CRM’s over the last 12 months.
INTU's Profit vs Risk Rating (33) in the Packaged Software industry is in the same range as CRM (52). This means that INTU’s stock grew similarly to CRM’s over the last 12 months.
CRM's SMR Rating (87) in the Packaged Software industry is in the same range as INTU (88). This means that CRM’s stock grew similarly to INTU’s over the last 12 months.
INTU's Price Growth Rating (62) in the Packaged Software industry is in the same range as CRM (64). This means that INTU’s stock grew similarly to CRM’s over the last 12 months.
CRM's P/E Growth Rating (5) in the Packaged Software industry is somewhat better than the same rating for INTU (40). This means that CRM’s stock grew somewhat faster than INTU’s over the last 12 months.
Momentum Indicator for CRM turns positive, indicating new upward trend
CRM saw its Momentum Indicator move above the 0 level on May 26, 2022. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In 69 of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at 78%.
Current price $162.41 crossed the resistance line at $182.39 and is trading between $182.39 resistance and $149.02 support lines. Throughout the month of 04/26/22 - 05/26/22, the price experienced a -4% Downtrend, while the week of 05/19/22 - 05/26/22 shows a +4% Uptrend.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CRM's RSI Oscillator exited the oversold zone, 18 of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 72%.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 41 of 55 cases where CRM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for CRM just turned positive on May 23, 2022. Looking at past instances where CRM's MACD turned positive, the stock continued to rise in 35 of 45 cases over the following month. The odds of a continued upward trend are 78%.
Following a +3.52% 3-day Advance, the price is estimated to grow further. Considering data from situations where CRM advanced for three days, in 236 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
The Aroon Indicator for CRM entered a downward trend on May 26, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 65%. During the last month, the daily ratio of advancing to declining volumes was 1.03 to 1.
The Tickeron PE Growth Rating for this company is 5 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 52 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. CRM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.778) is normal, around the industry mean (15.782). P/E Ratio (109.890) is within average values for comparable stocks, (151.538). Projected Growth (PEG Ratio) (1.736) is also within normal values, averaging (4.540). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (5.974) is also within normal values, averaging (101.100).
The Tickeron SMR rating for this company is 87 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Momentum Indicator for INTU turns positive, indicating new upward trend
INTU saw its Momentum Indicator move above the 0 level on May 25, 2022. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 90 similar instances where the indicator turned positive. In 69 of the 90 cases, the stock moved higher in the following days. The odds of a move higher are at 77%.
Current price $406.42 crossed the resistance line at $495.30 and is trading between $495.30 resistance and $270.04 support lines. Throughout the month of 04/26/22 - 05/26/22, the price experienced a -4% Downtrend, while the week of 05/19/22 - 05/26/22 shows a +12% Uptrend.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where INTU's RSI Oscillator exited the oversold zone, 9 of 13 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 69%.
The Moving Average Convergence Divergence (MACD) for INTU just turned positive on May 23, 2022. Looking at past instances where INTU's MACD turned positive, the stock continued to rise in 34 of 50 cases over the following month. The odds of a continued upward trend are 68%.
Following a +13.22% 3-day Advance, the price is estimated to grow further. Considering data from situations where INTU advanced for three days, in 264 of 363 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
The Stochastic Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
INTU moved below its 50-day Moving Average on April 21, 2022 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where INTU declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 51%.
INTU broke above its upper Bollinger Band on May 26, 2022. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for INTU entered a downward trend on May 23, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 66%. During the last month, the daily ratio of advancing to declining volumes was 1.21 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 33 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 40 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 58 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.761) is normal, around the industry mean (15.782). P/E Ratio (45.872) is within average values for comparable stocks, (151.538). Projected Growth (PEG Ratio) (1.676) is also within normal values, averaging (4.540). Dividend Yield (0.007) settles around the average of (0.027) among similar stocks. P/S Ratio (8.929) is also within normal values, averaging (101.100).
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating fairly steady price growth. INTU’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 88 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Latest blogs by Rick Pendergraft
Top Blogs
