Microsoft Stock Buy Hold or Sell Recommendation

MSFT
 Stock
  

USD 259.58  2.75  1.07%   

Given the investment horizon of 90 days and your slightly conservative level of risk, our recommendation regarding Microsoft Corp is 'Strong Hold'. Macroaxis provides Microsoft Corp buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MSFT positions. The advice algorithm takes into account all of Microsoft Corp's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Microsoft Corp's buy-and-hold perspective. Additionally, see Microsoft Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Microsoft and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Microsoft Corp.

Execute Microsoft Corp Buy or Sell Advice

The Microsoft recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Microsoft Corp. Macroaxis does not own or have any residual interests in Microsoft Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Microsoft Corp's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Microsoft CorpBuy Microsoft Corp
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Microsoft Corp has a Risk Adjusted Performance of (0.16), Jensen Alpha of (0.004642), Total Risk Alpha of 0.0392 and Treynor Ratio of (0.19)
Macroaxis provides trade recommendations on Microsoft Corp to complement and cross-verify current analyst consensus on Microsoft Corp. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Microsoft Corp is not overpriced, please verify all Microsoft Corp fundamentals, including its cash per share, beta, and the relationship between the revenue and cash flow from operations . Given that Microsoft Corp has a price to earning of 28.69 X, we recommend you to check Microsoft Corp market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Microsoft Corp Trading Alerts and Improvement Suggestions

Microsoft Corp generated a negative expected return over the last 90 days
Microsoft Corp is unlikely to experience financial distress in the next 2 years
About 72.0% of the company shares are owned by institutional investors
Latest headline from seekingalpha.com: Microsoft Stock Bullish View Vs. Bearish View - Seeking Alpha

Microsoft Corp current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Microsoft analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Microsoft analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price362.95
Target Median Price360.00
Target High Price425.96
Recommendation Mean1.70
Number Of Analyst Opinions46
Target Low Price298.18
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Microsoft Corp Returns Distribution Density

The distribution of Microsoft Corp's historical returns is an attempt to chart the future uncertainty of Microsoft Corp's future price movements. The chart of the probability distribution of Microsoft Corp stock daily returns describes the distribution of returns around its average expected value. We use Microsoft Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Microsoft Corp returns is essential to provide solid investment advice for Microsoft Corp stock.
Mean Return-0.26Value At Risk-4.24
Potential Upside2.97Standard Deviation2.32
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Microsoft Corp historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Microsoft Corp Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(11.63 B)(13.93 B)(15.44 B)(20.62 B)(18.56 B)(19.05 B)
Depreciation Amortization and Accretion10.26 B11.68 B12.8 B11.69 B13.44 B11.41 B
Net Cash Flow or Change in Cash and Cash Equivalents4.28 B(590 M)2.22 B648 M745.2 M851.11 M
Net Cash Flow Business Acquisitions and Disposals(888 M)(2.39 B)(2.52 B)(8.91 B)(8.02 B)(8.65 B)
Issuance Purchase of Equity Shares(9.72 B)(18.4 B)(21.62 B)(25.69 B)(23.12 B)(23.73 B)
Issuance Repayment of Debt Securities(10.2 B)(4 B)(8.94 B)(5.5 B)(4.95 B)(5.08 B)
Payment of Dividends and Other Cash Distributions(12.7 B)(13.81 B)(15.14 B)(16.52 B)(14.87 B)(16.04 B)
Net Cash Flow from Financing(33.59 B)(36.89 B)(46.03 B)(48.49 B)(43.64 B)(44.79 B)
Net Cash Flow from Investing(6.06 B)(15.77 B)(12.22 B)(27.58 B)(31.71 B)(34.22 B)
Net Cash Flow Investment Acquisitions and Disposals6.56 B540 M6.98 B2.88 B3.31 B3.57 B
Net Cash Flow from Operations43.88 B52.19 B60.67 B76.74 B88.25 B70.44 B
Effect of Exchange Rate Changes on Cash50 M(115 M)(201 M)(29 M)(26.1 M)(28.16 M)
Share Based Compensation3.94 B4.65 B5.29 B6.12 B7.04 B5.67 B

Microsoft Corp Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Microsoft Corp or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Microsoft Corp stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Microsoft stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.0046
β
Beta against DOW1.41
σ
Overall volatility
2.37
Ir
Information ratio -0.04

Microsoft Corp Volatility Alert

Microsoft Corp exhibits very low volatility with skewness of -0.17 and kurtosis of -0.81. However, we advise investors to further study Microsoft Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Microsoft Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Microsoft Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Microsoft Corp Implied Volatility

Microsoft Corp's implied volatility exposes the market's sentiment of Microsoft Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Microsoft Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Microsoft Corp stock will not fluctuate a lot when Microsoft Corp's options are near their expiration.

Microsoft Corp Fundamentals Vs Peers

Comparing Microsoft Corp's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Microsoft Corp's direct or indirect competition across all of the common fundamentals between Microsoft Corp and the related equities. This way, we can detect undervalued stocks with similar characteristics as Microsoft Corp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Microsoft Corp's fundamental indicators could also be used in its relative valuation, which is a method of valuing Microsoft Corp by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Microsoft Corp to competition
FundamentalsMicrosoft CorpPeer Average
Return On Equity48.72 %(0.31) %
Return On Asset15.67 %(0.14) %
Profit Margin37.63 %(1.27) %
Operating Margin49.33 %(5.51) %
Current Valuation2050 B16.62 B
Shares Outstanding7.51 B571.82 M
Shares Owned by Insiders0.07 %10.09 %
Shares Owned by Institutions72.10 %39.21 %
Number of Shares Shorted41.24 M4.71 M
Price to Earning28.69 X28.72 X
Price to Book12.67 X9.51 X
Price to Sales10.00 X11.42 X
Revenue192.56 B9.43 B
Gross Profit115.86 B27.38 B
EBITDA94.98 B3.9 B
Net Income72.46 B570.98 M
Cash and Equivalents104.66 B2.7 B
Cash per Share13.99 X5.01 X
Total Debt77.98 B5.32 B
Debt to Equity0.48 %48.70 %
Current Ratio1.99 X2.16 X
Book Value Per Share20.24 X1.93 K
Cash Flow from Operations87.12 B971.22 M
Short Ratio1.32 X4.00 X
Earnings Per Share8.94 X3.12 X
Price to Earnings To Growth1.69 X4.89 X
Number of Employees181 K18.84 K
Beta0.91-0.15
Market Capitalization1930 B19.03 B
Total Asset193.47 B29.47 B
Retained Earnings29.97 B9.33 B
Working Capital80.3 B1.48 B
Current Asset139.66 B9.34 B
   Acquisition by Sandra Peterson of 361 shares of Microsoft Corp subject to Rule 16b-3 [view details]

About Microsoft Corp Buy or Sell Advice

When is the right time to buy or sell Microsoft Corp? Buying financial instruments such as Microsoft Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Microsoft Corp investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables32.01 B38.04 B34.24 B27.24 B
Inventories1.9 B2.64 B2.37 B2.11 B

Use Investing Ideas to Build Portfolios

In addition to having Microsoft Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Apparel
Apparel Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Apparel theme has 61 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Apparel Theme or any other thematic opportunities.
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Additionally, see Microsoft Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Microsoft Corp information on this page should be used as a complementary analysis to other Microsoft Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

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Is Microsoft Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft Corp. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.094
Market Capitalization
1941.4 B
Quarterly Revenue Growth YOY
0.18
Return On Assets
0.16
Return On Equity
0.49
The market value of Microsoft Corp is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft Corp's value that differs from its market value or its book value, called intrinsic value, which is Microsoft Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft Corp's market value can be influenced by many factors that don't directly affect Microsoft Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Microsoft Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.