Key Factors
Salesforce.com is supported by AI and deepening penetration of companies, compounded by larger subscription costs. 
Workday is the premier vendor for back-office purposes utilizing AI to reinforce workflows.
Zscaler will scale with the cloud and AI as extra companies lean into digitization and cybersecurity threats enhance. 
5 shares we like higher than Zscaler
Santa Claus rally or not, the analysts are upping their targets on some high-quality tech names that stand to rally strongly in 2024. 
Salesforce.com Inc. NYSE: CRM, Zscaler Inc. NASDAQ: ZS and Workday Inc. NASDAQ: WDAY are all supported by secular tendencies that ought to maintain their progress, aided by AI. 
AI is the hottest factor in tech proper now, and these firms use it to assist their operations and provide its utility to their shoppers. On this paradigm, these cloud firms may be anticipated to proceed to develop and penetrate with companies as they lead their respective industries subsequent yr. 
Salesforce.com is essentially the most upgraded inventory on MarketBeat 
Salesforce.com has been ranked on MarketBeat’s most upgraded listing for a number of quarters with no change aside from its placement. The corporate is a top-10 most upgraded inventory, as are all on this listing, with 19 optimistic updates throughout calendar This autumn. This inventory is rated a “average purchase” with a value goal that’s up 30% over the past yr. The one damaging is that the consensus goal assumes the inventory is pretty valued close to present ranges however the development in sentiment offets it. Just one value goal issued in This autumn is beneath the consensus; most are within the $275 to $325 vary, implying the all-time excessive inventory value shall be retested and probably exceeded in 2024. 
The newest improve comes from Morgan Stanley. Analysts on the agency raised their score to “obese” and set a $350 value goal. That’s the new excessive goal for this inventory, about 33% above the present motion. They cite product innovation and AI as drivers of the enterprise. 
Additionally they see the market pricing with a low expectation for progress regardless of the corporate’s penetration beneficial properties and value will increase. AI ought to help gross sales and income with a major increase as the info cloud comes on-line later within the yr. 

Workday executes nicely, shares surge to new highs
Workday is one other “most upgraded” inventory on the Marketbeat.com platform, with 15 optimistic revisions within the final quarter. Most got here out following the Q3 launch as a result of outperformance and an sudden information— takeaways from the analysts’ chatter heart on execution. 
The corporate is cross-selling merchandise to present prospects whereas gaining traction with new and present companies. That’s evidenced by new offers, early renewals and longer contracts, which assist clear the long-term income outlook. The corporate is seen because the main vendor of back-office software program and among the many largest, fastest-growing software program firms in the marketplace. Progress is working within the mid-teens and persist at this stage subsequent fiscal yr. 

The marketplace for WDAY is hopeful. The inventory surged following the Q3 outcomes, making a bullish flag sample. The sample suggests value motion will proceed to maneuver upward with a goal at or close to the all-time excessive. 

Zscaler scaling the wall of fear
Zsaler shares corrected arduous on concern of slowing progress however at the moment are recovering from the autumn. The market is up practically 200% for the reason that backside and heading larger by the look of issues. The market tendencies recommend persistent demand compounded by elevated spending as cyber-attacks enhance and the cloud grows. Zscaler is the fifth most upgraded inventory for the quarter and has been on the listing a lot of the yr. 
Analysts price Zscaler a consensus “average purchase” and have dramatically shifted its value targets. The consensus goal is lagging the market however up sharply from lows set earlier this yr and possibly heading larger in 2024. Deal momentum is powerful on the finish of the calendar yr and is supported by hyper-growth in AI and the cloud.
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