Goldman Sachs on Cornerstone OnDemand: Estimated Potential Upside of 20%

Goldman Sachs (GS) believes that Cornerstone OnDemand could provide a cash return of 37% on cash investments in R&D by 2018.

Sarah Sands - Author

Dec. 4 2020, Updated 10:53 a.m. ET


Goldman Sachs on Cornerstone OnDemand

As of November 2, 2016, Goldman Sachs has included Cornerstone OnDemand (CSOD) among its top ten stocks that are making sizeable investments in R&D (research and developments). The investment firm believes that its top ten stock picks could beat the market (SPY) (IVV) (IWM).

According to the estimation provided by Goldman Sachs (GS), Cornerstone OnDemand could provide a cash return of 37% on cash investments in R&D by 2018. The investment firm set a stock price target of $50 by 2018 and sees a 20% upside for the stock.

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Performance of Cornerstone OnDemand

The company operates in the application software division and provides talent management solutions to its clients. The company also provides enterprise solutions and cloud-based platforms to its clients, and R&D will help the company analyze the changed behavior of clients while providing applications with new features.

The stock is currently trading at $39.35. Its 52-week high is $47.75 while its 52-week low is $22.25, and it is currently trading at PE (price-to-earnings) multiple of -28.79. On a YTD (year-to-date) basis, the stock has risen 16%. Over a two-year basis, the stock has risen 43% in value.

The stock is now trading 8.3% below its 100-day and 3.8% below its 20-day moving average. On April 4, 2016, its 20-day moving average crossed its 100-day moving average in an upward direction. Technically, when short-term moving averages cross long-term moving averages in an upward direction, it suggests continued upward movement.

In the next and final part of this series, we’ll analyze Goldman Sachs’s stance on Fortinet.


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