Morgan Stanley analyst Keith Weiss’ top pick for next year is Microsoft . Weiss has an overweight rating on the software giant’s shares. He also boosted his price target on the stock to $260 from $249.
“With tough near-term comparisons already in consensus estimates, and the multiple having pulled back to 26 times [estimated] 2022 calendar year EPS, we see potential for outperformance in fiscal year 2021 [ending June 30],” Weiss wrote in a commentary. He thinks that the durability of growth and margin expansion are underappreciated.
According to Weiss, a combination of market factors like sector rotation out of software, as well as Microsoft-specific factors have been weighing on the stock. The analyst thinks that there’s still more room for the sector rotation out of software, but “resolution in the fundamental factors should help to offset those pressures and restart momentum in the shares”.
MSFT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on March 28, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 55 instances where the indicator turned negative. In of the 55 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MSFT as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
MSFT moved below its 50-day moving average on April 15, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .
MSFT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 389 cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (13.245) is normal, around the industry mean (29.847). P/E Ratio (38.386) is within average values for comparable stocks, (155.253). Projected Growth (PEG Ratio) (2.153) is also within normal values, averaging (2.725). Dividend Yield (0.007) settles around the average of (0.081) among similar stocks. P/S Ratio (13.928) is also within normal values, averaging (55.178).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software and harware products
Industry PackagedSoftware