CRM: 3 Customer Relationship Management Stocks You Need to Keep Your Eye On

Investors who read about the tech industry are quite aware of the acronym “CRM.” It is mentioned in articles, newsletters, and other types of investment content. CRM is short for customer relationship management.

A growing number of companies specialize in improving the relationship between businesses and customers. Salesforce (CRM), Amdocs (DOX), and Five9 (FIVN) are three CRM stocks worth keeping tabs on as this industry continues to explode in popularity.

Salesforce (CRM)

CRM provides cloud computing, customer information analysis, and on-demand customer relationship management. With two decades of experience and a $168 billion market cap, CRM should be on every investor’s radar. CRM makes it easier for businesses to manage essential operations, automate sales, and provide customer service. Currently, CRM is the world’s largest CRM service vendor, holding 20% of the global market share.

CRM is expanding its product line with the launch of a mobile chat/collaboration tool, making the stock all the more intriguing as the WFH (work from home) movement continues to gain steam.

The company has a Strong Buy in the StockNews.com POWR Ratings. CRM is ranked #1 out of 47 companies in the Software – Business industry. The stock returned postive performance firgures over the last five years.

Amdocs (DOX)

As we move forward into a hyper-capitalist future, more and more businesses will offer services narrowly tailored to a business’s specific needs. DOX is one such company. DOX’s software empowers the world’s top service providers to improve customer management.

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With nearly 35 years of industry experience, DOX is a trailblazer in customer care, order management, and billing systems. DOX also provides advisory services, quality engineering solutions, cloud enablement, and autonomous network service assurance.

DOX is reasonably priced at $61, considering its forward P/E ratio is merely 14. Top analysts have set a price target of $72.75 for the stock.

Five9 (FIVN)

Every business owner and manager is searching for a cloud-based service that replaces costly call centers with affordable virtual contact centers. This is FIVN’s strength. Headquartered in beautiful San Ramon, CA, FIVN serves clients in an assortment of industries ranging from financial services to healthcare, consumer goods, business process outsourcing, and more.

FIVN stock has been flying high as of late, soaring from $56 in mid-March to its current price of $114.13. The stock recently set a 52-week high. The transition to working from home during the coronavirus pandemic has boosted demand for cloud-based services. Revenue is up nearly 30% on a year-over-year basis, hitting $95 billion. The re-emergence of the coronavirus has the potential to send FIVN to new heights.

FIVN has a Strong Buy rating in the POWR Ratings. It is ranked #15 out of 82 stocks in the Software – Application industry.

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CRM shares were trading at $194.44 per share on Thursday afternoon, up $2.55 (+1.33%). Year-to-date, CRM has gained 19.55%, versus a -1.56% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...