Jump to content

Microsoft stock at a record high ahead of earnings


Recommended Posts

After a stellar year, Microsoft looks well-positioned for further growth and further gains in its shares.

MicrosoftSource: Bloomberg
 
 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 19 July 2021 

When is Microsoft earning’s date?

Microsoft reports earnings on 27 July.

Microsoft earnings – what to expect

Microsoft is expected to report revenue of $44 billion, up 16%, while earnings per share (EPS) are expected to rise 30% to $1.90.

Earnings season this time rolls around when Microsoft stock has already hit a new record high. The last set of quarterly results beat forecasts, accompanied by strong guidance for the remainder of its year, together with the largest overall growth in revenue since 2018. Growth prospects for its key cloud computing division look good, after a year in which its share of the SaaS market rose to 19.7%. Other parts of the group, including its Dynamics business, are also increasing market share and projecting a further shift towards a subscription-based model.

Microsoft earnings – valuation and broker ratings

At 38 times earnings and with a yield of 0.8%, Microsoft is hardly a bargain. But it is still a quality stock, with good growth in earnings expected, and solid momentum behind the share price.

Unsurprisingly, Microsoft remains popular with brokers, with 37 ‘strong buy’ or ‘buy’ recommendations and just two ‘holds’, with no sell recommendations.

Microsoft shares – technical analysis

After the plunge of early 2020, Microsoft shares have recovered their poise, rallying steadily since April and showing no sign of slowing down. Repeated higher highs and higher lows have maintained the trend, and the price is still holding firmly above the 50-, 100- and 200-day moving averages (DMA). Trendline support from late September is some distance away, and after a 17% rally from the May low some consolidation and weakness might not be surprising.

Microsoft chartSource: ProRealTime

A solid performer, with more to come

This is a market that looks for quality in its winners, and Microsoft falls squarely into this category. Revenue growth is strong, the group has a solid plan for the quarters to come and the stock price continues to rally. So far, there seems little sign of a major shift in performance or sentiment.

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,300
    • Total Posts
      90,954
    • Total Members
      41,432
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Ranaishfaq
    Joined 08/02/23 12:30
  • Posts

    • Hi @DominicWalsh   Thanks for sharing your analysis on EURCAD.   All the best - MongiIG
    • EURCAD was consolidating for 3 weeks in a wide horizontal trading range on a daily. Its support was finally broken this week. I believe that the pair may go lower now. Next support - 1.428
    • Charting the Markets: 8 February FTSE 100 near record high, DAX 40 and S&P 500 also higher on Fed chair's speech. EUR/USD, GBP/USD and AUD/USD prices oversold in uptrend. And gold and oil prices rally, as lumber drops back. Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 08 February 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...