Microsoft (MSFT, $215.57) gets price target hike at Stifel, ahead of earnings release

Microsoft  got a price target hike from Stifel analysts.

The analysts raised their price target on the technology behemoth’s shares  to $245 from $220. They also affirmed a buy rating.

The analysts cited their expectations that Microsoft should benefit from faster digital transformation due to the coronavirus pandemic as well as a recuperating world economy. They expect the company to beat  fiscal-first-quarter earnings next week. 

Stifel is expecting  a "solid December guide" from Microsoft due to Office365 gains, market-share expansion for its cloud-computing business Azure, as well as the upcoming Xbox videogame console. 

According to Tickeron, 

MSFT in upward trend: price rose above 50-day moving average on October 09, 2020

MSFT moved above its 50-day Moving Average on October 09, 2020 date and that indicates a change from a downward trend to an upward trend. In 32 of 43 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 74%.

Current price $215.66 is above $211.97 the highest resistance line found by A.I. Throughout the month of 09/17/20 - 10/19/20, the price experienced a +6% Uptrend, while the week of 10/12/20 - 10/19/20 shows a -3% Downtrend.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on October 07, 2020. You may want to consider a long position or call options on MSFT as a result. In 60 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.

The Moving Average Convergence Divergence (MACD) for MSFT just turned positive on September 29, 2020. Looking at past instances where MSFT's MACD turned positive, the stock continued to rise in 39 of 54 cases over the following month. The odds of a continued upward trend are 72%.

The 10-day Moving Average for MSFT crossed bullishly above the 50-day moving average on October 13, 2020. This indicates that the trend has shifted higher and could be considered a buy signal. In 6 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.

Following a +3.27% 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in 216 of 349 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.

The Aroon Indicator entered an Uptrend today. In 241 of 414 cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.

Bearish Trend Analysis

The 10-day RSI Indicator for MSFT moved out of overbought territory on September 03, 2020. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 53 similar instances where the indicator moved out of overbought territory. In 19 of the 53 cases, the stock moved lower in the following days. This puts the odds of a move lower at 36%.

The Stochastic Indicator may be shifting from an upward trend to a downward trend. In 25 of 76 cases where MSFT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 33%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 32%.

MSFT broke above its upper Bollinger Band on October 09, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 87%. During the last month, the daily ratio of advancing to declining volumes was 2.23 to 1.

The Tickeron Profit vs. Risk Rating rating for this company is 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.

The Tickeron Valuation Rating of 14 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.71) is normal, around the industry mean (8.58). P/E Ratio (37.19) is within average values for comparable stocks, (342.46). Projected Growth (PEG Ratio) (2.54) is also within normal values, averaging (7.05). Dividend Yield (1.00) settles around the average of (0.31) among similar stocks. P/S Ratio (10.89) is also within normal values, averaging (16.25).

The Tickeron SMR rating for this company is 15 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 22 (best 1 - 100 worst), indicating outstanding price growth. MSFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.