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Microsoft (MSFT) Hits 52-Week High on Solid Growth Drivers
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Share price of Microsoft Corporation (MSFT - Free Report) rallied to a new 52-week high of $63.42, eventually closing a tad lower at $62.98 on Dec 13. This represents a steady one-year return of 12.6%, better than the Zacks Computer Software industry’s return of 10.5% over the same period.
Currently, Microsoft carries a Zacks Rank #3 (Hold). Notably, the stock has a market cap of $483.39 billion.
Key Factors
Microsoft reported decent first-quarter fiscal 2017 results. Though revenues missed, earnings exceeded the Zacks Consensus Estimate. Moreover, management provided strong revenue guidance for the second quarter of fiscal 2017.
Most recently, the company closed the acquisition of professional networking platform LinkedIn Corporation for $26.2 billion. With social media marketing catching up fast with the advertisers, the acquisition seems to be aptly timed and augurs well for the company to create a steady source of revenues in the future.
Moreover, Microsoft’s alliance with technology bigwigs such as Intel (INTC - Free Report) and Qualcomm (QCOM - Free Report) to develop the next generation of PCs that are more secure and support mixed-reality for enhanced gaming and mobile experiences is a move in the right direction. It has the potential to revive PC demand in the future.
Also, the company’s strengthening cloud position in China and an increased focus on using renewable resources for its data center’s power requirements are positives.
However, execution, foreign exchange risks and competition remain concerns for the company.
The Zacks Consensus Estimate for the current year i.e., fiscal 2017 has increased to $2.92 over the last 60 days as 12 out of 16 analysts revised their estimates upward. Also, for fiscal 2018, estimates have increased 0.3% to $3.25 per share over the same time frame, as six out of 13 analysts revised their estimates upward.
Estimates for Exa’s fiscal 2017 and fiscal 2018 have narrowed down to a loss of 17 cents (from 23 cents) and 7 cents (from 10 cents), respectively over the last 30 days.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Microsoft (MSFT) Hits 52-Week High on Solid Growth Drivers
Share price of Microsoft Corporation (MSFT - Free Report) rallied to a new 52-week high of $63.42, eventually closing a tad lower at $62.98 on Dec 13. This represents a steady one-year return of 12.6%, better than the Zacks Computer Software industry’s return of 10.5% over the same period.
Currently, Microsoft carries a Zacks Rank #3 (Hold). Notably, the stock has a market cap of $483.39 billion.
Key Factors
Microsoft reported decent first-quarter fiscal 2017 results. Though revenues missed, earnings exceeded the Zacks Consensus Estimate. Moreover, management provided strong revenue guidance for the second quarter of fiscal 2017.
Most recently, the company closed the acquisition of professional networking platform LinkedIn Corporation for $26.2 billion. With social media marketing catching up fast with the advertisers, the acquisition seems to be aptly timed and augurs well for the company to create a steady source of revenues in the future.
Moreover, Microsoft’s alliance with technology bigwigs such as Intel (INTC - Free Report) and Qualcomm (QCOM - Free Report) to develop the next generation of PCs that are more secure and support mixed-reality for enhanced gaming and mobile experiences is a move in the right direction. It has the potential to revive PC demand in the future.
Also, the company’s strengthening cloud position in China and an increased focus on using renewable resources for its data center’s power requirements are positives.
However, execution, foreign exchange risks and competition remain concerns for the company.
MICROSOFT CORP Price and Consensus
MICROSOFT CORP Price and Consensus | MICROSOFT CORP Quote
Estimate Revisions
The Zacks Consensus Estimate for the current year i.e., fiscal 2017 has increased to $2.92 over the last 60 days as 12 out of 16 analysts revised their estimates upward. Also, for fiscal 2018, estimates have increased 0.3% to $3.25 per share over the same time frame, as six out of 13 analysts revised their estimates upward.
A Key Sector Pick
A better-ranked stock in the sector is Exa Corporation , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Exa’s fiscal 2017 and fiscal 2018 have narrowed down to a loss of 17 cents (from 23 cents) and 7 cents (from 10 cents), respectively over the last 30 days.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>