Microsoft Could Hit Its Trading Target Within Days

MSFT has been under heavy accumulation after breaking through its long-term bearish resistance line

   

Microsoft (NASDAQ:MSFT) — “Mr. Softee” may finally be coming out of an 11-year slump. The stock hit a five-year high Thursday, as primarily institutional investors appear to be placing a high value on future growth. Outstanding growth in its video game business, a large stake in “the cloud,” stable cash flow, a regular stock buyback program, and a 2.8% dividend yield add up to higher earnings and share price.

Recently reported fiscal Q3 2013 earnings came in at $0.72 per share versus expectations of $0.68, up from $0.60 in the year-earlier period. Earnings per share (EPS) for fiscal year (FY) 2013, ending in June, are expected to be $2.68, while $3.09 is estimated for FY 2014 and $3.37 for FY 2015.

Early in April, MSFT broke through its long-term bearish resistance line with a high-volume breakaway gap. Since then, it has been under heavy accumulation.

The trading objective is $38, which could be met within days. Longer-term investors could pocket a sizable return from this software powerhouse.

MSFT Chart
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Trade of the Day Chart Key


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/trade-of-the-day-microsoft-nasdaq-msft/.

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