#2 - Microsoft (NASDAQ:MSFT)
Another Magnificent 7 stock on this list is Microsoft Corporation (NASDAQ: MSFT). Technology stocks that have exposure to many different areas may not appeal to some investors, but Microsoft is showing that a jack-of-many-trades can also be a leader.
Microsoft is still the world’s leading software company. And it maintains that title for both consumer operating systems (which includes productivity software) and cloud computing. In 2023, the tech giant announced a partnership with OpenAI to bring generative AI to the forefront of the technology sector. To that end, the company is making savvy investments in nuclear power, which will be needed to meet the insatiable power demand of data centers.
Another compelling reason to buy MSFT stock is that at 33x forward earnings, it’s fairly valued and may be considered undervalued to some other technology stocks. That said, MSFT stock is up just 14% in 2024, which lags the broader market, but analysts give the stock 15% more upside, and the stock pays a dividend that has averaged over 10% growth for the last three years.
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
- $417.79
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 26 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $503.03 (20.4% Upside)
