Sign InMicrosoft (MSFT) Stock Analysis: Bullish Trend Continues with Positive Analyst Ratings
Summary
As of September 12, 2023, Microsoft Corporation's stock has experienced a slight downtrend but remains positive and bullish in the mid-to-long term, with a high relative valuation, positive analyst ratings, and promising developments such as the launch of an Xbox credit card. Technical indicators suggest a bullish trend, and the future price target indicates an expectation of stock appreciation. Based on the analysis, the predicted stock price for September 13, 2023, could fall within the range of its support and resistance levels, and MSFT is likely to maintain its current bullish trend in the upcoming week. Investors should constantly monitor the market and the company's fundamentals for changes.
Fundamental Analysis
Microsoft Corporation (MSFT) closed at $331.77 on September 12, 2023, indicating a downtrend of 1.83%, or a decrease by $6.17 from the previous trading session. Despite the downturn, Microsoft's performance remains positive, trading above its 50-Day Moving Average of $332.70 and well above its 200-Day Moving Average of $290.88. This signals a bullish trend in the mid-to long-term.
Regarding earnings, MSFT has an Earnings Per Share (EPS) of $9.67 and a Price-to-Earnings (PE) ratio of 34.31, reflecting the stock's high relative valuation. Microsoft's market capitalization stands at $2.47 trillion, demonstrating its mammoth presence in the index.
According to the provided analyst ratings, Microsoft is predominantly rated as a 'Buy' with 29 analysts endorsing this view. Only 4 analysts hold a neutral stance, and 2 suggest a 'sell'. This indicates a general consensus among analysts that the stock has a positive outlook.
Microsoft has recently been in the news due to various promising developments. The firm was highlighted as one of the value stocks seen by Tiger Cubs, a group of investors trained by the late legendary investor, Julian Robertson. The company's launch of a credit card, aimed at Xbox gamers, also stands to boost its customer loyalty and engagement. Furthermore, news indicating an expected positive growth for Microsoft is favorable for its future outlook.
Technical Analysis
Microsoft's Relative Strength Index (RSI) is currently at 60, indicating that the stock is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) value of 0.57849 suggests a bullish upward trend.
The Average True Range (ATR) of 1.80 indicates moderate price volatility. If the market remains stable, a potential fluctuation within this range is expected.
Looking at support and resistance levels, MSFT has solid support at $330.72, with resistance at $337.77. Therefore, the stock's price will likely move within this range in the short-term.
The Discounted Cash Flow (DCF) value of $336.41 suggests an intrinsic value slightly above the last closing price.
The future price target set by analysts ranges from $230 to $420, with a median target of $315 and a consensus target of $325.62. This indicates an expectation of stock appreciation in the future.
Future Predictions and Evaluation
Based on the analysis, the predicted stock price for MSFT for the trading day of September 13, 2023, could fall within the range of its support and resistance levels ($330.72 - $337.77), given no radical market changes or news affecting the company.
Looking forward to the upcoming week, taking into account both the fundamental analysis - latest news and analyst forecasts, and technical indicators - daily volatility, RSI, and MACD, MSFT is likely to maintain its current bullish trend.
Considering the strong fundamentals of the company, the generally positive analyst ratings, and evident bullish trend, MSFT stock can be categorized as a "Buy". The well-above average 200 Day Moving Average, promising news, and expected positive growth support this decision. Moreover, the company's strategic initiatives, such as the Xbox associated credit card launch, are also promising for future growth. Investors should, however, constantly monitor the market, news, and the company's fundamentals for changes.
