salesforce.com (CRM - Free Report) was a star performer in Wednesday’s trading session, as the stock soared more than 26% to a record high, following its robust fiscal second-quarter earnings results and an upbeat outlook. The share price gain represents the best one-day performance ever.

Quick Insight Into Earnings

Earnings per share came in at $1.44, outpacing the Zacks Consensus Estimate of 67 cents and improving 118% from the year-ago quarter. Revenues climbed 29% year over year to $5.15 billion and edged past the consensus mark of $4.9 billion.

The cloud-based customer relationship-management company raised its revenue guidance from $20 billion to $20.7-20.8 billion for fiscal 2021 and earnings per share guidance to $3.72-$3.74 from $2.93-$2.95. Both guidance figures are well ahead of the Zacks Consensus Estimate of $20.05 billion for revenues and $2.97 for earnings per share. This is primarily driven by coronavirus-spurred demand for its online business software that supports remote work and commerce.

Impressed by solid earnings results, many Wall Street analysts raised the price target on the enterprise software maker. This has spread optimism into the company’s future growth story as well as the software industry.

Other Software Stocks Joined Rally

The historic rally of salesforce.com pushed other software stocks higher. Some of the biggest gainers are Zuora (ZUO) – up 11.3%, WorkDay (WDAY) - up 10.1%, Coupa Software Inc. (COUP) - up 10%, Adobe (ADBE) – up 9.1%, Okta Inc. (OKTA) - up 7%, ServiceNow Inc. (NOW) - up 6.5%, Smartsheet Inc. (SMAR) – up 6.5%, Splunk Inc. (SPLK) - up 6.4%, Twilio Inc. (TWLO) - up 6.2%, Atlassian Corp. (TEA) - up 6% and ZenDesk Inc. (ZEN) - up 6%.

Solid Fundamentals

salesforce.com has been on a winning streak lately on the announcement that the company will join Dow Jones Industrial Average, replacing oil giant Exxon Mobil (XOM - Free Report) effective Aug 31 before market open. Additionally, Salesforce is positioned to benefit from the digital transformation megatrend. It has emerged as a leader in areas such as data aggregation, integration and visualization.

The stock has risen about 67% so far this year, clearly outpacing the gains of 7.7% for the S&P 500 and 30% for the Nasdaq Composite Index. It currently has a Zacks Rank #2 (Buy) and a Growth Score of B, indicating continued outperformance. Additionally, the stock belongs to the top-ranked Zacks industry (top 26%).

ETFs to Buy

The solid trading in software stocks sent many technology ETFs into deep green on the day. These funds gained in the range of 3-5% on the day and have substantial exposure to the software provider. Below we highlighted them:

iShares Expanded Tech-Software Sector ETF (IGV - Free Report)

This ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. Holding a basket of 101 securities, Salesfore.com takes the top spot with 9.1% allocation. The fund charges 46 bps in annual fees and has AUM of $5.2 billion. Volume is good as it exchanges nearly 941,000 shares a day. IGV has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.

First Trust Dow Jones Internet Index (FDN - Free Report)

This is one of the most popular and liquid ETFs in the broader tech space with AUM of $10.1 billion and average daily volume of around 499,000 shares. The fund tracks the Dow Jones Internet Composite Index and charges 52 bps in fees per year. Holding 42 stocks in its basket, CRM occupies the fifth position at 4.6%. The product has a Zacks ETF Rank #2 with a High risk outlook.

iShares U.S. Tech Breakthrough Multisector ETF (TECB - Free Report)

This ETF offers access to companies at the forefront of innovation in the tech sector and beyond by tracking the NYSE FactSet U.S. Tech Breakthrough Index. It holds 156 stocks in its basket with salesforce.com taking the fourth spot at 4.4% of assets. The product has amassed $360.9 million in its asset base since its debut at the start of the year and charges 40 bps in annual fees. It trades in average daily volume of 44,000 shares.

Global X Cloud Computing ETF (CLOU - Free Report)

This ETF seeks to invest in companies positioned to benefit from the increased adoption of cloud computing technology, including companies whose principal business is in offering computing Software-as-a-Service, Platform-as-a-Service, Infrastructure-as-a-Service, managed server storage space and data center real estate investment trusts, and cloud and edge computing infrastructure and hardware. The fund tracks the Indxx Global Cloud Computing Index, holding 36 securities in its basket with salesforce.com occupying seventh position at 4% share. It has accumulated around $1.1 billion in its asset base and charges 68 bps in annual fees. CLOU has a Zacks ETF Rank #3 (Hold).

Invesco NASDAQ Internet ETF (PNQI - Free Report)

This fund offers exposure to the largest and most liquid companies that are engaged in Internet-related businesses by tracking the Nasdaq Internet Index. It holds about 89 stocks with CRM taking the seventh spot in its basket with 3.9% allocation. The product has AUM of $857.5 million and trades in a lower volume of about 30,000 shares a day. It charges 62 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook.