Below is Validea's guru fundamental report for MICROSOFT CORP (MSFT). Of the 22 guru strategies we follow, MSFT rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental moment
Apple (NASDAQ: AAPL) is a technology leader, but the company is rarely a first mover. Instead, it sees how a market is unfolding and introduces products that leverage commodity technologies with a great user experience to take a lead.
The iShares S&P 500 Value ETF (IVE) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Vanguard S&P 500 Value ETF (VOOV) is a passively managed exchange traded fund launched on 09/09/2010.
After a disastrous performance in 2022 (the worst in the past decade), the stock market has so far made a solid recovery in 2023. The benchmark S&P 500 index is currently up by 27.4% from its bear market low in October 2022 and only 5% below its all-time high reached in Janua
After a disastrous performance in 2022 (the worst in the past decade), the stock market has so far made a solid recovery in 2023. The benchmark S&P 500 index is currently up by 27.4% from its bear market low in October 2022 and only 5% below its all-time high reached in Janua
The term "Magnificent Seven" is used to describe Alphabet, Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Meta Platforms, Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla. They are the seven most valuable companies in the Nasdaq Composite (as of Nov. 24), and to say they'
For Immediate ReleaseChicago, IL – November 29, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the f
Microsoft (
NASDAQ:MSFT
) stock is a great pick for "momo" (momentum) traders and anyone seeking artificial intelligence (AI) market exposure. I am bullish on MSFT stock and would actually consider it to present good value, even after its epic rally this year.
Microsoft is a true giant among software and cloud computing service providers. Plus, Microsoft is among the "Magnificent Seven" technology businesses that investors have heavily favored in 2023.
As we'll discover, analysts also strongly favor Microsoft, and there are valid reasons for this. So, don't worry too much about "buyers' exhaustion," as Microsoft stock looks unstoppable and is an excellent choice for both value investors and "momo" traders.
Is the OpenAI Imbroglio a Problem for Microsoft?
Interestingly, the financial media hasn't focused on Microsoft during the past couple of weeks. Instead, the buzz has been about OpenAI, the developer of the popular generative AI chatbot ChatGPT.
Microsoft has invested a sizable amount of capital, around $13 billion, in OpenAI. This investment has enabled Microsoft to get a leg up over its competitors in the gen-AI (generative AI) arms race this year.
Consequently, whenever OpenAI is in the news, Microsoft's investors should definitely pay attention. As it turns out, OpenAI has been in the news, but not necessarily for positive reasons.
Specifically, four directors on OpenAI's board engineered an
ouster of CEO Sam Altman. This was controversial, as those board members removed Altman without input from OpenAI's investors. Furthermore, some OpenAI employees weren't very happy about Altman's ouster.
The broad perception is that Altman, a co-founder of OpenAI, helped to build the company into the gen-AI powerhouse that it is today. In any case, some board directors are leaving OpenAI, and Altman is reportedly returning as the company's CEO.
Throughout the OpenAI imbroglio, Microsoft stock has
held steady and even climbed higher. Clearly, the market understands that the worst is over for OpenAI in this strange chapter of the company's history. Microsoft can continue to access OpenAI's game-changing gen-AI technology, and the short-sellers have remained on the losing side of the trade.
Microsoft's "Stodgy" Multiple
Microsoft is a cloud king with its Azure business, a software giant since the old days of Windows 95, and a gen-AI contender with its OpenAI stake. Yet, the skeptics and short sellers continue to stubbornly bet against Microsoft due to worries about the company's valuation multiple.
Granted, Microsoft's GAAP trailing 12-month price-to-earnings (P/E) ratio of 36.69x is higher than the sector median P/E ratio of 25.67x. Yet,
Barron's commentator Steven M. Sears views MSFT stock as a "red-hot stock that
trades at a stodgy multiple."
Sure, "stodgy" is an unusual descriptor for Microsoft's valuation multiple, but it makes sense if you think about it. The analyst cited the impact that AI could have on Microsoft, and I concur that the company can benefit from the gen-AI phenomenon that started this year and should continue in 2024.
So, Microsoft's valuation may be "stodgy" in the sense of being heavy-set, but it's justified by the company's expected future growth. That's why MSFT stock can continue to climb even if the naysayers refuse to accept Microsoft's "magnificent" qualities as a tech titan.
Is MSFT Stock a Buy, According to Analysts?
On TipRanks, MSFT comes in as a Strong Buy based on an eye-popping 33 Buys and only one Hold rating, plus no Sell ratings at all, assigned by analysts in the past three months. The
average Microsoft stock price target is $412.03, implying 7.7% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell MSFT stock, the most profitable analyst covering the stock (on a one-year timeframe) is Alex Zukin of Wolfe Research, with an average return of 32.9% per rating and a 97% success rate. Click on the image below to learn more.
Conclusion: Should You Consider MSFT Stock?
Analysts generally favor Microsoft, and the company's investors have been in the winner's circle all year long. Meanwhile, Microsoft's "stodgy" valuation doesn't mean the stock has to come down, though it might take a breather and drift sideways for a while.
That shouldn't be a problem for patient investors. Microsoft has "momo," and betting against the company is a no-no, in my opinion. Therefore, if you're in the market for a strong competitor in the cloud, gen-AI, and software markets, I encourage you to consider MSFT stock.
Disclosure
OpenAI is not expected to offer Microsoft and other investors a seat on its new nine-person board, the Information reported on Tuesday, citing a source.
NetApp raised its annual profit forecast on resilient demand for its cloud-based data solutions as companies push on digital transformation projects, sending its shares up 10% after the bell on Thursday.
NetApp beat second-quarter revenue expectations on resilient demand for its cloud-based data solutions as companies push on digital transformation projects, sending its shares up 10% after the bell on Thursday.
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Group 1 Automotive, Inc. (Symbol: GPI), where a total of 2,345 contracts have traded so far, representing approximately 234,500 underlying shares. That amounts to about
EU antitrust regulators have asked Microsoft's rivals whether the U.S. software giant's proposal to unbundle its chat and video app Teams from its Office product is sufficient to address their concerns, according to a questionnaire seen by Reuters.
Amazon.com on Tuesday announced a new artificial intelligence chip for its cloud computing service as competition with Microsoft to dominate the market for artificial intelligence heats up.
Amazon.com on Tuesday introduced its newest data center chip for its cloud computing service as competition with Microsoft to dominate the market for artificial intelligence heats up.
Tuesday, November 28, 2023The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corporation (MSFT), Broadcom In
Zacks
Checked
24 minutes ago
This feed is responsible for generating the rss feed related to the topic MSFT