#4 - Microsoft (NASDAQ:MSFT)
Even after a 3.5% pullback since the company’s earnings report in late July, shares of Microsoft Corp. (NASDAQ: MSFT) are still up 12% in 2024 and more than 33% in the last year. The concern coming out of earnings is that the company lowered guidance for overall revenue and, in particular, its cloud business, Azure.
But this is a case where investors should follow Warren Buffett's advice to be greedy when others are fearful. Microsoft is a rock-solid business with a fortress balance sheet. MSFT stock carries a forward P/E ratio of around 32x. That’s not overvalued for a technology stock, particularly a mega-cap name like Microsoft.
And even though nobody will confuse Microsoft with a value stock, it is approaching dividend aristocrat status. Shareholders have enjoyed 22 consecutive years of dividend growth.
The Microsoft analysts' forecast on MarketBeat shows a mixed reaction to the earnings report. The price targets, however, are generally above the consensus target of $494.72. Wedbush is the most bullish, with a target price of $550. Not only is that approximately 10% above the consensus price, but it’s also about 25% higher than the stock’s closing price on August 20, 2024.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.
Read More - Current Price
- $438.69
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 32 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $494.72 (12.8% Upside)
