Microsoft (MSFT, $235.77) wins Pentagon contract for AR headsets; deal could be worth $22 billion over 10 years
Microsoft won a major Pentagon contract, potentially worth $22 billion for the next years, for augmented reality headsets. Per the contract, the technology giant will produce 120,000 of the headsets, which are based on its HoloLens technology,
According to a statement from the Program Executive Office Soldier, the Pentagon awarded Microsoft a fixed price production agreement to manufacture the Integrated Visual Augmentation System (IVAS).
Microsoft’s headsets will be used to boost situational awareness for military personnel by using holograms overlying the actual visual environment, CNBC reported. The device will help in displaying maps, compasses and thermal images, aiming points for weapons carried by the personnel(according to the report).
This follows a $480 million contract Microsoft won to give the Army prototypes of the Integrated Visual Augmented System, or IVAS, in 2018.
MSFT in downward trend: price may drop because broke its higher Bollinger Band on May 25, 2023
MSFT broke above its upper Bollinger Band on May 25, 2023. 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. The A.I.dvisor looked at 48 similar instances where the stock broke above the upper band. In of the 48 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for MSFT moved out of overbought territory on May 31, 2023. 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 of the 53 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 26, 2023. You may want to consider a long position or call options on MSFT as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MSFT just turned positive on May 25, 2023. Looking at past instances where MSFT's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 371 cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 89, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (12.547) is normal, around the industry mean (31.526). P/E Ratio (35.587) is within average values for comparable stocks, (167.679). Projected Growth (PEG Ratio) (2.413) is also within normal values, averaging (4.163). Dividend Yield (0.008) settles around the average of (0.040) among similar stocks. P/S Ratio (11.834) is also within normal values, averaging (75.236).
The Tickeron Price Growth Rating for this company is (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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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.
The Tickeron PE Growth Rating for this company is (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.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of software and harware products
Industry PackagedSoftware
MSFT and
Correlation & Price change
A.I.dvisor indicates that over the last year, MSFT has been closely correlated with MANH. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if MSFT jumps, then MANH could also see price increases.
| Ticker / NAME | Correlation To MSFT | 1D Price Change % | ||
|---|---|---|---|---|
| MSFT | 100% | -0.85% | ||
| MANH - MSFT | 74% Closely correlated | +1.32% | ||
| FFIV - MSFT | 74% Closely correlated | -0.07% | ||
| ADBE - MSFT | 74% Closely correlated | +0.18% | ||
| ANSS - MSFT | 74% Closely correlated | -1.69% | ||
| INTU - MSFT | 73% Closely correlated | +3.21% | ||
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