Despite tech stocks taking a significant hit in October, Microsoft (NASDAQ: MSFT) has had no problems with remaining stable. Unlike many of its competitors, Microsoft has pulled through on analyst expectations for many quarters. Because of Microsoft’s monopoly-like position in the desktop market, demand remains high for company, allowing it to brave the storm far better than other tech stocks.
In the last 12-months, Microsoft share price has made gains of over 30%. In today’s climate, it is rare that a tech stock has such a positive outlook over the past few months. Microsoft stock price has only dropped 6 percent below its all-time high price.
Is Microsoft Stock A Good Buy?
The challenges that many of the largest tech company’s are facing stem from missing revenue estimates, causing investor confidence to slip and their respecting share prices to follow suit. Companies such as Apple, Nvidia and Facebook have all missed revenue estimates. The missed revenue estimates are an indication that the market is slowing, with some tech firms looking at single digit growth in the next year. This is hardly enticing for investors. This leaves investors with few tech stock prospects to chose from, with Microsoft shares being one of the few that are growing steadily.
Microsoft is better equipped in times of crisis because it is dominant in a variety of market sectors. We expect Microsoft stock price to keep climbing over the next few quarters, as demand remains high.
Year-over-year, Microsoft has presented steady growth, with the share price and growth metrics to prove it. For long-term investors, MSFT stock has the potential for upside, making it a stock to watch in Q4.
Microsoft Stock Analysis
Microsoft has beat analyst earnings estimates in Q3. This is nothing new for Microsoft, as the company has consistently beat EPS estimates in all of its last eight quarters. In short, Microsoft shares are as stable as it gets for a tech company.
Revenues increased by 19 percent year-over-year from Q3 2017 to Q3 2018. Operating income saw a 29 percent increase. Earnings Per Share jumped by 36 percent, with net income growing by 34 percent. Microsoft’s margins are impressive, especially when compared to its competitors.
Microsoft Stock Prediction
Our analyst gives Microsoft stock a 12-month price forecast of $125.
Our analyst gives Microsoft shares a “BUY” rating currently.
Microsoft stock is a good buy in a market where “good buys” are rare to come across. Despite being public since 1986, Microsoft is still operating at full-speed. We expect Microsoft shares to outperform its competitors well into the future, making it a potential for upside.