Salesforce.com, Interpublic: S&P Gainers
The S&P 500 rose 2.28 points, or 0.17%, to close at 1,365.74 on Friday.
Shares of Salesforce.com rose 9.01% to $143.64. After Thursday's closing bell, the cloud computing company reported fourth-quarter adjusted earnings of $61.6 million, or 43 cents a share, on revenue of $632 million. Analysts were expecting profit of 40 cents a share on revenue of $624 million.
The company also said it anticipates revenue for the first quarter of fiscal 2013 of between $673 million and $678 million, an increase of about 33% year over year.
Think Equity analysts raised their rating on Salesforce.com to buy from hold and have a price target of $165 on the stock.
"Our contacts suggest competitor distractions (via recent-acquisitions) are accentuating CRM's disruptive market-positioning, leading to larger, multi-element deals," Think Equity analysts wrote in the report Friday.
The analysts added, "Despite our concerns around Enterprisewide data integration limitations, we think CRM has an attractive 6 to 12-month window to accelerate share-gains as the larger ERPs play catch-up with their Cloud strategies."
Thirty-three of the 42 analysts who cover Salesforce.com rate it at buy. Five analysts give it a hold rating and four rate it a sell.
Salesforce.com has an estimated price-to-earnings ratio for next year of 66.8; the average for software companies is 28.58. For comparison, Adobe Systems (ADBE) and Citrix Systems (CTXS) both have lower forward P/Es of 12.38 and 24, respectively.
TheStreet Ratings gives Salesforce.com a C grade and a hold rating. The stock has risen 41.75% year to date.
Interpublic Group shares rose 6.51% to $11.62. The marketing company reported Friday fourth-quarter earnings of $259 million, or 58 cents a share, up from year-ago earnings of $195 million, or 41 cents a share. Analysts expected 39 cents a share in earnings.
The company also announced a new share repurchase program of up to $300 million with no expiration date.
Interpublic Group has a forward P/E of 12.45; the average for media companies is 25.15. For comparison, Nielsen Holdings (NLSN) and Clear Channel Outdoor Holdings (CCO) both have higher forward P/Es of 13.77 and 40.13 respectively.
Of the 24 analysts who cover Interpublic Group, 16 rated the stock buy. Seven analysts gave it a hold rating and one rated it sell.
Interpublic Group gets a B grade from TheStreet Ratings with a buy rating and $12.62 price target. The stock increased 19.42% year to date.
Other top S&P performers included:
- Sears Holdings (SHLD) : The stock rose 10.53% Friday to $68.31. The stock increased 114.95% year to date. TheStreet Ratings gives Sears a D grade and sell rating.
- Boston Scientific (BSX) : The stock increased 5.93% Friday to $6.25. The stock has risen 17.04% year to date. TheStreet Ratings gives Boston Scientific a C grade and hold rating.
- R.R. Donnelley & Sons (RRD) : The stock rose 4.06% Friday to $14.10. The stock fell 2.29% year to date. TheStreet Ratings gives R.R. Donnelley & Sons a C- grade and hold rating.
- TripAdvisor(TRIP) : The stock increased 3.96% Friday to $31.80. The stock has risen 26.14% year to date.
- Iron Mountain (IRM) : The stock rose 3.93% Friday to $31.44. The stock increased 2.08% year to date. TheStreet Ratings gives Iron Mountain a B grade with a buy rating and $39.94 price target.
- Alpha Natural Resources (ANR) : The stock increased 3.23% Friday to $20.46. The stock has risen 3 cents year to date. TheStreet Ratings gives Alpha Natural Resources a C grade and hold rating.
- Teradata(TDC) : The stock rose 2.89% Friday to $65.48. The stock increased 34.98% year to date. TheStreet Ratings gives Teradata an A grade with a buy rating and $82.02 price target.
- Tenet Healthcare (THC) : The stock increased 2.85% to $5.78. The stock has risen 12.67% year to date. TheStreet Ratings gives Tenet Healthcare a C grade and hold rating.