Nasdaq MSFT MicroSoft

Japan's Nintendo Co Ltd said on Wednesday it sold 3.43 million units of its Switch console in the April-June quarter.

Wall Street ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan.

The S&P 500 ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan.

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Meta Platforms Inc (Symbol: META), where a total volume of 304,652 contracts has been traded thus far today, a contract volume which is representative of approxi

Microsoft's (NASDAQ: MSFT) business is growing and still generating impressive profits and cash flow. Yet the expansion pace is slowing in areas like digital advertising and the broader PC market. And Microsoft is facing new profit pressures thanks to inflation and currency excha

Activision Blizzard ATVI delivered non-GAAP earnings of 48 cents per share for second-quarter 2022, down 60% year over year due to a soft Call of Duty: Vanguard launch last fall and a slow year for the gaming industry so far as it deals with hardware supply chain issues a

Software stocks have been benefiting primarily from the ongoing digital transformation and solid demand for remote working and learning solutions. However, unfavourable forex and the negative impact of the suspension of all new sales and services in Russia due to the ongo

Cloud networking specialist Arista Networks (NYSE: ANET) announced second-quarter earnings after the market closed Monday, and the results dazzled Wall Street. Despite supply chain disruptions and rising costs, revenue soared 49% to $1.1 billion and earnings rose 52% to $0.94 per

While turning $150,000 into $1 million in a decade may sound overwhelming, aiming for the 21% annual returns necessary to make this happen helps reframe things.

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.

Making its debut on 08/13/2013, smart beta exchange traded fund Schwab Fundamental U.S. Large Company Index ETF (FNDX) provides investors broad exposure to the Style Box - Large Cap Value category of the market.

Netflix (NASDAQ: NFLX) is currently working on an ad-supported tier aimed at more cost-sensitive customers. The company has yet to disclose pricing details or to confirm an exact launch date, only saying it will arrive in early 2023. But there are signs that the advertising-based

It's been a tough year for the investing community. Since the three major indexes hit their respective record-closing highs between mid-November and early January, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have plunged by as much as 19%, 24%, and 34%. In

So far, this year has been quite challenging for the U.S. technology industry, due to supply-chain disruptions, subdued international demand, geopolitical tensions, cost inflation, and rising interest rates. In these adverse operating conditions, these mega-cap tech players are trending the most among investors: Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), and Broadcom Inc. (NASDAQ: AVGO).

It is worth mentioning here that the Dow Jones U.S. Technology Index has declined 22.2% since the beginning of 2022. Another tech-heavy index, the NASDAQ 100 Technology Sector Index is down 26.6%, while its volumes have surged 146.4% year-to-date. A decline in prices and high trading volumes suggest that tech companies are still hot picks among investors.

According to a Statista report, revenues of the U.S. software market are forecast to increase by 5.25% CAGR, and those of the IT Services market could rise by 6.38% CAGR by 2027. For 2022, software and IT Services revenues are forecast to be $297.10 billion and $411.8 billion, respectively.

A consolidated chart of the abovementioned technology companies has been prepared using TipRank’s Stock Comparison tool.

Microsoft Corporation (NASDAQ: MSFT)

In addition to the macroeconomic headwinds discussed above, lower demand for personal computers and unfavorable movements in foreign currencies have bitten into the profits of this tech giant lately. Shares of this $2.1-trillion software company have fallen 16.1% since the beginning of 2022. However, volumes have soared 78.5% year-to-date.

For Fiscal 2023 (ending June 2023), the company anticipates revenues to benefit from the strength in commercial business and the company’s focus on expanding its market share. It anticipates revenues and operating income to expand in the double-digit range in the year.

On TipRanks, the company has a Strong Buy consensus rating based on 29 Buys. MSFT’s average price target of $331 represents 17.90% upside potential from the current level. Also, the investor sentiment on the stock is Positive, as the number of portfolios having investments in MSFT has increased 1.2% in the last 30 days.

Alphabet Inc. (NASDAQ: GOOGL)

This $1.52-trillion company is the holding company of interactive media behemoth Google. It suffered from high costs and expenses in the second quarter of 2022, which impacted its operating margin. In addition to these headwinds, uncertain economic conditions, domestically and internationally, have pressured the company since the beginning of 2022. Alphabet stock has declined 19.8% year-to-date, while its volumes have grown 105.9% so far this year.

In the quarters ahead, the company believes that its investments in computing and artificial intelligence, and its effective capital allocation policy will be advantageous. This tech giant is in the good books of analysts and commands a Strong Buy consensus rating based on 28 Buys and two Holds. GOOGL’s average price forecast of $141.28 suggests 21.46% upside potential.                 

On TipRanks, investors are Very Positive about the company’s prospects, as portfolios holding GOOGL have increased 3.6% in the last 30 days.

Broadcom Inc. (NASDAQ: AVGO)

Shares of this $216.3-billion semiconductor company have declined 19.3% so far this year. Uncertain economic conditions, supply-chain issues, labor problems, and cost inflation have deeply impacted the company’s operations. However, the company's top line benefits from technological advancements, strength in server storage, and its networking businesses. Further, rewards to shareholders increase its investment appeal. The stock’s volumes have increased 53.4% year-to-date.

On TipRanks, analysts are unanimously optimistic about Broadcom, which has a Strong Buy consensus rating based on 12 Buys. AVGO’s average price target of $698.64 reflects 30.47% upside potential from the current level.

The investor sentiment is Very Positive about AVGO. In the last 30 days, portfolios holding AVGO stock have increased 3.5%.

Investors' Liking for MSFT, GOOGL & AVGO Stocks Is Justified

Microsoft, Alphabet, and Broadcom are well-rooted companies in the technology industry, which is evident from the price trajectory visible in the chart below. Also, these companies have Smart Scores within the range of 8 to 10, which suggests their potential to outperform the broader market.

Investors seem to have complete faith in the growth prospects of MSFT, GOOGL, and AVGO, as they have skillfully used the low stock prices as an opportunity to gain exposure to these tech giants.

Read full Disclosure

Despite the strong recovery in the U.S. stock market in July, investors remain wary of sky-high inflation and macro uncertainty. During these challenging times, several investors consider blue-chip stocks to be safer bets. Blue-chip stocks are stocks of large, well-established companies that have a solid track record, and generally offer steadily growing dividends. Using the TipRanks Stock Comparison Tool, we placed AbbVie, 3M, and Microsoft against each other to pick the blue-chip stock that Wall Street analysts find more favorable at current levels.

AbbVie (NYSE: ABBV)

Biopharma company AbbVie recently reported better-than-anticipated adjusted earnings of $3.37 per share (up 11.2% year-over-year) for the second quarter. Revenue increased 4.5% to $14.6 billion but fell short of expectations.

Abbvie’s blockbuster immunology drug Humira is losing its exclusivity in the U.S. next year. Investors are keenly looking for strength in other categories, which can offset the expected decline in Humira’s revenue when the drug faces competition from biosimilars. Humira’s Q2 revenue increased nearly 6% to $5.4 billion, but revenue from AbbVie's hematologic oncology portfolio and aesthetics line fell 9.1% and 4.4%, respectively. Meanwhile, revenue from AbbVie’s neuroscience portfolio surged 14%.

Piper Sandler analyst Christopher Raymond noted that AbbVie missed revenue expectations for the second straight quarter, which doesn’t look good as the company is generally considered a safe haven stock both within the sector and in a recessionary backdrop. However, Raymond thinks that AbbVie should be given benefit of the doubt, as a “look under the hood” indicates a possible revenue reacceleration in the second half of the year.

Based on his investment thesis, Raymond lowered his price target for AbbVie to $155 from $160, but maintained a Buy rating.

With nine Buys, six Holds, and one Sell, the Street has a Moderate Buy consensus rating for AbbVie stock. The average price target of $160.94 implies 14.78% upside potential from current levels.

3M (NYSE: MMM)

Industrial conglomerate 3M’s second-quarter sales declined 3% to $8.7 billion. Adjusted EPS fell nearly 10% to $2.48 but still exceeded analysts’ expectations. The company lowered its full-year guidance due to currency headwinds and macro uncertainty.

3M’s Q2 results were overshadowed by certain key updates that it provided. The company announced its decision to spin off its Health Care business into a standalone company by the end of 2023. 3M intends to retain a 19.9% stake in the new company.

3M also announced that its subsidiary Aearo Technologies, which produces Combat Arms Earplugs, has filed for chapter 11 bankruptcy proceedings to establish a trust with the aim of resolving all legal claims related to the product. 3M stated that while it believes the earplugs are safe and effective when used properly, they face increasing litigation. The company recorded a $1.2 billion pre-tax charge in Q2 in connection with Combat Arms Earplugs litigations.

Citigroup analyst Andrew Kaplowitz increased his price target for 3M stock to $145 from $136, and maintained a Hold rating. The analyst believes that the company’s Q2 results reflect continued execution by the company, despite a tough operating backdrop. Kaplowitz opines that 3M is well placed to fight high inflation through price hikes and cost discipline.

Overall, 3M stock has a Moderate Sell consensus rating based on seven Holds and four Sells. The average price target of $139.36 suggests 2.79% downside potential from current levels.  

Microsoft (NASDAQ: MSFT)

Software giant Microsoft’s results for the fourth quarter of FY22 (ended June 30, 2022) lagged the Street’s expectations. Revenue grew 12% to $51.9 billion, while EPS increased 3% to $2.23. Unfavorable foreign exchange movements, lockdowns in China, continued weakness in personal computer market demand, and lower advertising spending hurt the company’s performance.

Revenue from Azure (Microsoft’s cloud computing platform) and other cloud services grew 40% but fell short of expectations. The company’s cloud business is considered to be one of its key growth engines.

However, MSFT stock rose as the company reaffirmed its double-digit revenue and operating income growth outlook for FY23. Microsoft expects its top-line growth to be fueled by continued momentum in its commercial business and efforts to gain market share across its portfolio.

Oppenheimer analyst Timothy Horan stated that while Microsoft is hit by macro challenges, it is gaining market share in information technology. Horan feels that despite an adverse business backdrop, Microsoft's platform is benefiting from rapid digital transformation.

Horan added that Microsoft is taking advantage of the digital transformation trend by “adding security, advertising, communications, CRM [customer relationship management], etc. in a low-cost best-of-suite strategy, well suited for a recession, helped by scale advantages.” The analyst reiterated a Buy rating on Microsoft stock with a price target of $300.

Overall, the stock scores a Strong Buy consensus rating backed by an impressive 29 unanimous Buys. The average price target of $331 for Microsoft stock implies 19.06% upside potential from current levels.

Conclusion

AbbVie stock has outperformed 3M and Microsoft year-to-date and has an attractive forward dividend yield of 4%. That said, Wall Street analysts are very bullish on Microsoft stock and estimate a higher upside potential from current levels compared to the other two stocks.

Analysts covering Microsoft are optimistic about the company’s long-term growth potential, especially in the cloud market. The company’s cloud business has been growing rapidly, with its Intelligent Cloud segment accounting for nearly 38% of the overall FY22 revenue.

As per TipRanks Smart Score System, Microsoft scores an eight out of 10, indicating that the stock could outperform the broader market.  

Disclosure 

WASHINGTON (Reuters Breakingviews) - Technology companies have stormed the heights of consumer finance, but they don’t face the regulation that vexes their old-world rivals. While no single financial watchdog has oversight of Apple, Amazon

UBS Group (UBS) recently released a list of top-conviction plays, as it believes the broader economic state calls for investors to divert from a broad-based equities portfolio. Conviction investing is a tactical approach, which means that investors overweight a small number of stocks in the short run, and it can be profitable if done correctly. Here are three high-conviction plays contracted from UBS' list that I'm bullish on.

CrowdStrike (CRWD)

CrowdStrike is a phenomenal secular growth play, which could cause it to leapfrog many other technology names. The company's front-end offerings are attractively priced and highly effective, considering CrowdStrike's 64% year-over-year increase in subscription revenue.

According to UBS' equity analysis team notes: "Within security, CrowdStrike is the market share leader in endpoint security and is expanding into growing markets including cloud security and security analytics."

CrowdStrike's dominant market share is conveyed by its three-year CAGR (compound annual growth rate) of 76.3%, which exceeds the broader cybersecurity market's growth rate by approximately 5.85x. Moreover, with a gross margin of 73.6%, CrowdStrike has achieved economies of scale, allowing it to reap the benefits of pricing power.

Furthermore, CrowdStrike is on an acquisition spree, which could add tremendous "sum of the parts" value to its business. According to reports, CrowdStrike's in a bid to acquire an anonymous Israeli data center company for $2 billion. If successful, this acquisition would add vertical integration to CrowdStrike's business model, in turn proliferating shareholder value.

Turning to Wall Street, CrowdStrike earns a Strong Buy consensus rating based on 21 Buys. CRWD stock's average price target of $228.33 implies 24.3% upside potential.

Microsoft (MSFT)

UBS believes Microsoft's Azure is increasing the company's holistic embedded growth.

Azure holds down more than 20% of the cloud infrastructure space and is growing at nearly 50% per year, meaning that it adds significant secular growth prospects to Microsoft stock. Moreover, approximately 35% of Microsoft's revenue mix derives from Azure and related offerings; therefore, it could attract many cloud-driven investors in the coming years.

Another factor that could play into Microsoft's hands is that it's considered a high-quality stock by many. For instance, BlackRock (BLK) allocates Microsoft to its iShares MSCI USA Quality Factor ETF (QUAL).

Microsoft's high-quality status could benefit its stock in the current market climate due to risk aversion from investors. High-quality stocks exhibit robust return metrics and solid market share, deeming them favorable whenever the stock market's in an uncertain state.

Furthermore, the stock's price-to-earnings ratio is at a 15.6% discount from its five-year average, implying that MSFT stock is relatively undervalued. TipRanks' P/E ratio range tool also suggests that Microsoft's relative valuation metrics have receded.

Turning to Wall Street, Microsoft earns a Strong Buy consensus rating based on 29 Buys. MSFT stock's average price target of $331.00 implies 19% upside potential.

Visa (V)

Visa released its third-quarter financial report last week, revealing a triumphant quarter as it beat its revenue target by $206.6 million. Additionally, Visa tightened up its income statement to achieve an earnings beat of $0.23 per share.

UBS believes Visa is a value play, which could prompt many investors to buy into weakness after the stock shed almost 15% of its value in the past year.

Visa's growth rates have picked up lately, as global reopenings and the emergence of seasonal travel has coalesced to benefit the company. In its third quarter, Visa's year-over-year Payments Volume increased by 12%, Cross-Border Volume increased a staggering 40%, and Processed Transactions increased 16%.

Many see Visa as a mature company that's facing rising competition. However, with the economy facing significant challenges, the smaller players in the payments & merchant space might fizzle out while Visa sustains its growth. Moreover, the firm exhibits consistency with a 10-year CAGR (compound annual growth rate) of 10.1%.

Even though Visa's dividend payouts remain stale, there are signs that the firm is gradually starting to increase its shareholder compensation. For instance, Visa stock exhibits 13 straight years of dividend growth, which, if sustained, could add up to a lucrative total return profile for its stockholders.

Turning to Wall Street, Visa earns a Strong Buy consensus rating based on 20 Buys and two Holds. The average Visa price target of $257.18 implies 21.25% upside potential.

Conclusion: CrowdStrike, Microsoft, and Visa Could Outperform

Three stocks stand out in UBS' high-conviction stock list. According to qualitative theory and bullish analyst ratings, CrowdStrike, Microsoft, and Visa could reign supreme in this challenging economy.

Disclosure

UBS Group (UBS) recently released a list of top-conviction plays, as it believes the broader economic state calls for investors to divert from a broad-based equities portfolio. Conviction investing is a tactical approach, which means that investors overweight a small number of stocks in the short run, and it can be profitable if done correctly. Here are three high-conviction plays contracted from UBS' list that I'm bullish on.

CrowdStrike (CRWD)

CrowdStrike is a phenomenal secular growth play, which could cause it to leapfrog many other technology names. The company's front-end offerings are attractively priced and highly effective, considering CrowdStrike's 64% year-over-year increase in subscription revenue.

According to UBS' equity analysis team notes: "Within security, CrowdStrike is the market share leader in endpoint security and is expanding into growing markets including cloud security and security analytics."

CrowdStrike's dominant market share is conveyed by its three-year CAGR (compound annual growth rate) of 76.3%, which exceeds the broader cybersecurity market's growth rate by approximately 5.85x. Moreover, with a gross margin of 73.6%, CrowdStrike has achieved economies of scale, allowing it to reap the benefits of pricing power.

Furthermore, CrowdStrike is on an acquisition spree, which could add tremendous "sum of the parts" value to its business. According to reports, CrowdStrike's in a bid to acquire an anonymous Israeli data center company for $2 billion. If successful, this acquisition would add vertical integration to CrowdStrike's business model, in turn proliferating shareholder value.

Turning to Wall Street, CrowdStrike earns a Strong Buy consensus rating based on 21 Buys. CRWD stock's average price target of $228.33 implies 24.3% upside potential.

Microsoft (MSFT)

UBS believes Microsoft's Azure is increasing the company's holistic embedded growth.

Azure holds down more than 20% of the cloud infrastructure space and is growing at nearly 50% per year, meaning that it adds significant secular growth prospects to Microsoft stock. Moreover, approximately 35% of Microsoft's revenue mix derives from Azure and related offerings; therefore, it could attract many cloud-driven investors in the coming years.

Another factor that could play into Microsoft's hands is that it's considered a high-quality stock by many. For instance, BlackRock (BLK) allocates Microsoft to its iShares MSCI USA Quality Factor ETF (QUAL).

Microsoft's high-quality status could benefit its stock in the current market climate due to risk aversion from investors. High-quality stocks exhibit robust return metrics and solid market share, deeming them favorable whenever the stock market's in an uncertain state.

Furthermore, the stock's price-to-earnings ratio is at a 15.6% discount from its five-year average, implying that MSFT stock is relatively undervalued. TipRanks' P/E ratio range tool also suggests that Microsoft's relative valuation metrics have receded.

Turning to Wall Street, Microsoft earns a Strong Buy consensus rating based on 29 Buys. MSFT stock's average price target of $331.00 implies 19% upside potential.

Visa (V)

Visa released its third-quarter financial report last week, revealing a triumphant quarter as it beat its revenue target by $206.6 million. Additionally, Visa tightened up its income statement to achieve an earnings beat of $0.23 per share.

UBS believes Visa is a value play, which could prompt many investors to buy into weakness after the stock shed almost 15% of its value in the past year.

Visa's growth rates have picked up lately, as global reopenings and the emergence of seasonal travel has coalesced to benefit the company. In its third quarter, Visa's year-over-year Payments Volume increased by 12%, Cross-Border Volume increased a staggering 40%, and Processed Transactions increased 16%.

Many see Visa as a mature company that's facing rising competition. However, with the economy facing significant challenges, the smaller players in the payments & merchant space might fizzle out while Visa sustains its growth. Moreover, the firm exhibits consistency with a 10-year CAGR (compound annual growth rate) of 10.1%.

Even though Visa's dividend payouts remain stale, there are signs that the firm is gradually starting to increase its shareholder compensation. For instance, Visa stock exhibits 13 straight years of dividend growth, which, if sustained, could add up to a lucrative total return profile for its stockholders.

Turning to Wall Street, Visa earns a Strong Buy consensus rating based on 20 Buys and two Holds. The average Visa price target of $257.18 implies 21.25% upside potential.

Conclusion: CrowdStrike, Microsoft, and Visa Could Outperform

Three stocks stand out in UBS' high-conviction stock list. According to qualitative theory and bullish analyst ratings, CrowdStrike, Microsoft, and Visa could reign supreme in this challenging economy.

Disclosure

Check Out These Three Dow Jones Industrial Average Stocks In The Stock Market TodayThe Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large, publicly traded companies trading on the New York Stock Exchange (NYSE) and Nasdaq. The Dow

Oracle Corp has started to lay off employees in the United States, The Information said on Monday, citing a person with direct knowledge of the matter.