Microsoft Stock Buy Hold or Sell Recommendation

MSFT -  USA Stock  

USD 304.21  1.46  0.48%

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Microsoft Corp is 'Strong Buy'. 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.

Microsoft Advice 

 
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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 Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

PhenomenalDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Microsoft Corp has a Risk Adjusted Performance of 0.0919, Jensen Alpha of 0.1104, Total Risk Alpha of 0.1073, Sortino Ratio of 0.105 and Treynor Ratio of 0.1241
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 41.26 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 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 finance.yahoo.com: The Zacks Analyst Blog Highlights Microsoft, NVIDIA, Applied Materials, Broadcom, and salesforce.com - Yahoo Finance

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 Price329.18
Target Median Price330.00
Target High Price411.00
Recommendation Mean1.60
Number Of Analyst Opinions33
Target Low Price275.00
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 Return0.13Value At Risk-1.75
Potential Upside2.08Standard Deviation1.12
 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 Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Microsoft Corp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Microsoft Corp backward and forwards among themselves. Microsoft Corp's institutional investor refers to the entity that pools money to purchase Microsoft Corp's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Envestnet Asset Management IncCommon Shares6.2 M1.7 B
Davenport Co Llc 1Common Shares1.4 M382.9 M
State Of Alaska Department Of RevenueCommon Shares1.3 M364.6 M
Atalanta Sosnoff Capital LlcCommon SharesM293.5 M
Lgt Capital Partners LtdCommon SharesM283.7 M
Manning Napier Group LlcCommon Shares972.5 K274.2 M
Private Advisor Group LlcCommon Shares954.3 K269 M
Note, although Microsoft Corp's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Microsoft Corp Cash Flow Accounts

201620172018201920202021 (projected)
Capital Expenditure(8.13 B)(11.63 B)(13.93 B)(15.44 B)(20.62 B)(21.16 B)
Depreciation Amortization and Accretion8.78 B10.26 B11.68 B12.8 B11.69 B10.49 B
Net Cash Flow or Change in Cash and Cash Equivalents1.15 B4.28 B(590 M)2.22 B648 M799.95 M
Net Cash Flow Business Acquisitions and Disposals(25.94 B)(888 M)(2.39 B)(2.52 B)(8.91 B)(9.61 B)
Issuance Purchase of Equity Shares(11.02 B)(9.72 B)(18.4 B)(21.62 B)(25.69 B)(26.37 B)
Issuance Repayment of Debt Securities31.46 B(10.2 B)(4 B)(8.94 B)(5.5 B)(5.65 B)
Payment of Dividends and Other Cash Distributions(11.85 B)(12.7 B)(13.81 B)(15.14 B)(16.52 B)(17.83 B)
Net Cash Flow from Financing8.41 B(33.59 B)(36.89 B)(46.03 B)(48.49 B)(49.76 B)
Net Cash Flow from Investing(46.78 B)(6.06 B)(15.77 B)(12.22 B)(27.58 B)(29.75 B)
Net Cash Flow Investment Acquisitions and Disposals(12.51 B)6.56 B540 M6.98 B2.88 B3.1 B
Net Cash Flow from Operations39.51 B43.88 B52.19 B60.67 B76.74 B64.39 B
Effect of Exchange Rate Changes on Cash19 M50 M(115 M)(201 M)(29 M)(31.29 M)
Share Based Compensation3.27 B3.94 B4.65 B5.29 B6.12 B5.19 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
0.11
β
Beta against DOW0.94
σ
Overall volatility
1.11
Ir
Information ratio 0.1

Microsoft Corp Volatility Alert

Microsoft Corp has relatively low volatility with skewness of -0.27 and kurtosis of 1.24. However, we advise all investors to independently investigate Microsoft Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. 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 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 Equity47.08 %(0.31) %
Return On Asset13.76 %(0.14) %
Profit Margin36.45 %(1.27) %
Operating Margin48.08 %(5.51) %
Current Valuation2170 B16.62 B
Shares Outstanding7.53 B571.82 M
Shares Owned by Insiders0.08 %10.09 %
Shares Owned by Institutions71.72 %39.21 %
Number of Shares Shorted45.7 M4.71 M
Price to Earning41.26 X28.72 X
Price to Book16.96 X9.51 X
Price to Sales13.57 X11.42 X
Revenue168.09 B9.43 B
Gross Profit115.86 B27.38 B
EBITDA80.82 B3.9 B
Net Income61.27 B570.98 M
Cash and Equivalents130.26 B2.7 B
Cash per Share17.33 X5.01 X
Total Debt82.28 B5.32 B
Debt to Equity0.58 %48.70 %
Current Ratio2.08 X2.16 X
Book Value Per Share17.85 X1.93 K
Cash Flow from Operations76.74 B971.22 M
Short Ratio2.28 X4.00 X
Earnings Per Share7.34 X3.12 X
Price to Earnings To Growth2.24 X4.89 X
Number of Employees181 K18.84 K
Beta0.78-0.15
Market Capitalization2280 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 John Thompson of 264 shares of Microsoft Corp subject to Rule 16b-3 [view details]

Microsoft Corp Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Microsoft . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution327550.0
Daily Balance Of Power0.3715
Rate Of Daily Change1.0
Day Median Price302.49
Day Typical Price303.06
Price Action Indicator2.45

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.
 2018 2019 2020 2021 (projected)
Receivables29.52 B32.01 B38.04 B41.05 B
Inventories2.06 B1.9 B2.64 B2.24 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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Run Disruptive Technologies Thematic Idea Now

Disruptive Technologies
Disruptive Technologies Theme
New or established technology companies and funds across multiple sectors that are involved in development or marketing of products or services that experience disruptive trends and that are at the forefront of discussions on Wall Street. Disruptive Technologies theme has 53 constituents.
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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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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When running Microsoft Corp price analysis, check to measure Microsoft Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft Corp is operating at the current time. Most of Microsoft Corp's value examination focuses on studying past and present price action to predict the probability of Microsoft Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Microsoft Corp's price. Additionally, you may evaluate how the addition of Microsoft Corp to your portfolios can decrease your overall portfolio volatility.
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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 underlying business (such as 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.