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Microsoft Corp
Microsoft Corp
MSFT
$ 4.09
1.73%
20%
IBD Stock Analysis
- The stock has formed a flat base over the past six weeks with a buy point of 246.23
- Aggressive investors could have added stocks to the early entry of 240.16.
- But stocks now have a lower than normal relative strength rating of 41 out of 99.
Classification of industrial groups
Emerging model
Flat base
* No real-time data. All displayed data was captured as of 1:42 p.m. EDT on 03/23/2021.
Microsoft (MSFT) is the IBD title of the day as the software giant rebounds from the recent sell-off of tech stocks. Microsoft stock is near a point of purchase.
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In the afternoon of trading on the stock market today, Microsoft stock was up 1.7% to 240.08.
Over the past six weeks, Microsoft stock has formed a flat base with a buy point of 246.23, according to IBD MarketSmith charts. MSFT stock hit an all-time high of 246.13 on February 16 before falling 9% on the market correction.
Aggressive investors could have added stocks at an early entry buy point of 240.16, according to IBD analysis. Microsoft stock hit that level on Tuesday by breaking through a short bearish trend and breaking through its 50-day moving average line and 10-week line.
The office software group is lagging behind
According to IBD Stock Checkup, Microsoft stock ranks second out of seven in IBD’s Computer Software-Desktop industry group. It has an IBD Composite Rating of 74 out of 99. The IBD Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a composite rating of 90 or higher.
The office software group is ranked 159th out of 197 industry groups followed by IBD. Choosing highly rated stocks of large industrial groups in a confirmed uptrend in the stock market generally increases your chances of making profits on growth stocks. Growth equity investors should generally focus on the core stocks of the top 40 industry groups.
The biggest drag on Microsoft’s composite rating is its below-average stock market performance lately. It has an IBD relative strength rating of 41 out of 99. That places it in the bottom half of stocks for performance over the past 12 months.
Additionally, Microsoft has an IBD Accumulation / Distribution rating of D-, indicating an institutional sale of MSFT shares recently.
Microsoft Stock on two IBD watchlists
On March 9, investment bank Goldman Sachs added Microsoft to its “doom list” of recommended actions.
Microsoft is “well positioned to capitalize on digital transformation spending, which we believe will exceed overall IT (information technology) budgets for the foreseeable future,” Goldman analysts said in a note to clients. Microsoft has a strong presence in cloud computing, with applications, platforms and infrastructure offerings, Goldman said.
The next major catalyst for Microsoft stock could be the company’s March quarterly earnings report, due in late April. Wall Street expects the Redmond, Wash., Based company to earn $ 1.77 a share, up 26% year-over-year, in its fiscal third quarter . Analysts are forecasting sales of $ 41.03 billion, up 17%.
Microsoft Stock is on the prestigious IBD Watch List. He is also part of IBD’s long-term leaders portfolio.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software, and semiconductor inventory.
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