Currently, Microsoft Corp (NASDAQ:MSFT) has a Strong Buy using Louis Navellier's investing approach and his Portfolio Grader stock evaluator. MSFT has maintained this ranking for 6 months.
The company ranks in the top 10% of its industry group, Software, and in the top decile of sector group, Information Technology, with a market value of $642.8 billion.
The Information Technology sector is ranked number 4 among the 12 sectors in the Portfolio Grader universe putting it in the second quartile of all the GICS sectors. The Software industry group is ranked 18 among the 69 industry groups within the GICS sectors, placing it near the average in terms of the Navellier scoring system.
Microsoft has achieved above-average scores in 7 of the 8 fundamental metrics used by Portfolio Grader in the ranking of company stocks.
MSFT's operational scores are a source of strength with a ranking for sales growth, operating margin and earnings growth that are discernibly above average. Scores for visibility of earnings are superior with a ranking for earnings revisions, earnings surprises and earnings momentum that are discernibly better than average. MSFT's ranking for return on equity is significantly better than its industry group average but its grade for cash flow is below-average. These fundamental scores give Microsoft a position in the top decile of the industry group.
Quantitatively, Portfolio Grader uses the Navellier Proprietary Quantitative Score to measure MSFT's shares from the perspective of risk/reward. This proprietary scoring approach balances the relative value of MSFT's shares based on the current price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, the company currently scores well above-average in its industry group compared to its peers.
Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.