With a $650.5 billion market value, Microsoft Corp (NASDAQ:MSFT) ranks in the top decile in its industry group, Software, and in the top 10% of its sector group, Information Technology, in market value. From the vantage point of investment attractiveness, the stock's Portfolio Grader ranking places it 15 among the 142 companies in this industry group, giving it a well above-average position; in the top quartile of the sector with a ranking of 90 among the 702 companies in the sector, and number 368 in the nearly 5,000 company Portfolio Grader universe.
MSFT has a current recommendation of Strong Buy using the stock evaluator from Portfolio Grader, which incorporates Louis Navellier's investing approach. MSFT has maintained this ranking for 7 months.
The Information Technology sector is ranked number 3 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 11 among the 69 industry groups within the GICS sectors, placing it above-average in terms of the Navellier scoring system.
Microsoft has earned above-average scores in 7 of the 8 fundamental metrics used by Portfolio Grader in the ranking of company stocks.
The company'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 score for return on equity is markedly 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.
Portfolio Grader quantitatively views MSFT's shares using the Navellier Proprietary Quantitative Score. This metric looks at MSFT's shares from the angle of risk/reward. This proprietary scoring approach weighs the relative value of the company'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, MSFT 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.