Why We Rate Microsoft A Buy

Microsoft (MSFT) is a technology company. Their products include operating systems for computing devices, servers, phones, and other intelligent devices; server applications for distributed computing environments; cross-device productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. They also design and sell hardware including PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. They offer cloud-based solutions that provide customers with software, services, platforms, and content. They also provide consulting and product and solution support services, and they train and certify computer system integrators and developers.

We discussed Apple last week in a bulletin, so it seems like a good time to take a look at that company's long-time arch-rival, Microsoft. Microsoft used to be the leader, now many consider it "stale" despite its massive business in staples of computing such as Windows, Office, etc. The company also has XBox, and in an effort to provide more exclusive content for that system, has decided to buy four game design studios as well as launching its own.

Despite the fact that the company is no longer considered an innovative leader by many analysts, it continues to post big numbers for shareholders and decent quarterly results. When the firm reported Q3 2018 results at the end of April, they showed a 16% increase in revenue to $26.8 billion, a 23% increase in operating income to $8.3 billion, and a 35% increase in net income to $7.4 billion. Diluted earnings per share increased 36% to $0.95 share. The firm also returned $6.3 billion to shareholders in the form of dividends and share repurchases in Q3.

Numbers like those show that while Microsoft may not be considered as "sexy" as Apple, it continues to perform for shareholders.

ValuEngine continues its BUY recommendation on MICROSOFT CORP for 2018-06-08. Based on the information we have gathered and our resulting research, we feel that MICROSOFT CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.
 

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

102.35 0.71%

3-Month

102.62 0.97%

6-Month

105.23 3.54%

1-Year

110.26 8.50%

2-Year

110.62 8.84%

3-Year

109.64 7.88%


 

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.