Salesforce.com Inc (NYSE: CRM) has had a good run in the stock market this year, with shares up about 20% year-to-date. While a record $265 a share might be enticing for the investors to take profits, Nancy Tengler of Laffer Tengler Investments says, “this is a place where you can step in and add it to your holdings.”
Tengler’s remarks on CNBC’s “Trading Nation”
Tengler has Salesforce in her 12 best ideas portfolio. At 60 times, she said on CNBC’s “Trading Nation”, Salesforce is relatively cheap on a multiple basis.
“We like Salesforce because it underperformed last year; they had blowout earnings where it wasn’t just the revenue that hit a new high, but margins expanded nicely as well. On top of that, they raised guidance, now forecasting a 24% growth in 2022,” she added.
RBC Capital Markets assumed coverage of Salesforce last week with an ‘outperform’ rating after it reported market-beating results for Q2 and raised guidance for the full year. The $245 billion company now has a price to earnings ratio of 106.25.
Tengler withdrew from Amgen recently
On the contrary, Tengler recently pulled out of Amgen as it continued to underperform SPX and the S&P healthcare index.
“At some point, you have to admit; you’re not just early, you’re simply wrong. We’ve owned the stock for a long time; great dividend. But we finally realised that there are better places for us to be, so we exited a while ago,” Tengler said in the same interview with CNBC.
Other names in growth stocks that Tengler likes include Honeywell International Inc, which is one of her largest holdings at the moment. Shares of the multinational conglomerate are up more than 10% this year.
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