Jefferies Says Buy 4 Top Tech Stocks Now as Q1 Winds Down

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Salesforce.com

This top company reported solid fiscal 2018 results as billings drastically improved, and this quarter was no exception. Salesforce.com Inc. (NYSE: CRM) provides enterprise cloud computing solutions, with a focus on customer relationship management to various businesses and industries worldwide.

It offers enterprise cloud computing applications and platform services, including Sales Cloud that enables companies to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence and collaborate around sales on desktop and mobile devices.

The company also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as connect their service agents with customers on various devices; and Marketing Cloud, which enables companies to plan, personalize and optimize customer interactions.

Jefferies commented on the company’s recent earnings report:

Salesforce.com reported last week and fourth quarter results were modestly better though first quarter revenue guidance came in below consensus, likely because we believe the company missed internal new business targets for the fourth quarter. We cut fiscal first quarter, but raised fiscal 2020 and believe the company remains well positioned to fulfill long-term goals.

The $189 Jefferies price target compares to a $181.32 consensus price. The shares closed trading most recently at $157.65.

ServiceNow

This stock had an outstanding 2018 and remains a top pick at Jefferies. ServiceNow Inc. (NYSE: NOW) develops and sells a hosted, subscription-based suite of services designed to automate various IT department functions, such as help desk, operations management and change/release management.

The company also sells a number of applications that automate various self-service related applications outside of the IT department, such as HR onboarding, facilities requests and governance, risk and compliance.

The company blew out fourth-quarter earnings in January, and the analysts said this regarding first-quarter progress:

We attended the company’s Federal Summit in D.C. Our discussions suggest ServiceNow is gaining traction at federal agencies and we walked away with a positive view on the ability to grow its federal business. Federal business quarter-to-date is tracking at or above quota for the first quarter, partners reported rapid growth in their company practices and we heard of continued success in replacing Remedy and high-win rates in general.

The Jefferies price objective is $242. The consensus price target is $238.03, and the stock closed most recently at $239.86 a share, up over 2.5% on the day.

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These four top stocks look like solid choices for aggressive growth accounts. Needless to say, anything can happen with the quarter nearing the end, so it may make sense to buy partial positions here and wait for the first-quarter results in a month or so.