Microsoft Stock Is Still a Long-Term Powerhouse

  • A Citi analyst gave Microsoft (MSFT) a “buy” rating and an optimistic price target.
  • Microsoft continues to introduce outstanding products, including cloud-based software.
  • Investors can find excellent value right now with MSFT stock.
MSFT stock - Microsoft Stock Is Still a Long-Term Powerhouse

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An analyst with Citi just gave Microsoft (NASDAQ:MSFT) a high rating and a price target that implies upside for MSFT stock. Furthermore, Microsoft is introducing exciting news products and features. These include cloud-based offerings for governments and Viva Engage for Teams.

Due to recession worries, some investors might look far and wide for stocks that offer value and confidence. Yet, there’s an old stand-by that’s actually thoroughly modern and should stand investors in good stead throughout the ups and downs of the economy.

There’s no need to say that Microsoft is “back” as this tech giant never went away. Always a bellwether in leading-edge software, Microsoft is proving its stature again with unique products and even a potentially game-changing cloud-based solution for the public sector.

Ticker Company  Recent Price
MSFT Microsoft $258.83

What’s Happening With MSFT Stock?

Sure, MSFT stock is down year-to-date, but that’s not unusual for technology stocks in 2022. The stock is actually holding up reasonably well and is a great value at the current share price.

Indeed, Microsoft’s trailing 12-month price-to-earnings (P/E) ratio of 27.65x suggests that the share price is justified by Microsoft’s profits. Furthermore, income-focused investors should observe that Microsoft pays a forward annual dividend yield of 0.95%.

If you can catch MSFT stock below $300, then consider yourself lucky. Citi analyst Tyler Radke just put a price target of $330 on the stock, while also calling Microsoft shares a “good place to hide” in a recession.

This doesn’t mean that Microsoft’s investors won’t incur any losses during a full-on economic recession. Comparatively speaking, though, they might outperform other investors. After all, Microsoft offers “compelling relative valuation, business model resiliency and outsized revenue growth” compared to the S&P 500, according to Radke.

By the way, the Citi analyst also gave MSFT stock a “buy” rating. He’s particularly bullish on the growth prospects of Microsoft’s cloud-based computing platform, Azure.

From Engaging to Protecting

Azure is just one of Microsoft’s broad array of feature-rich products, however. For example, the company is celebrating the one-year anniversary of the highly secure operating system Windows 365. This includes Autopatch, which automates Windows updates in order to improve security.

Microsoft also has a communications/teleconferencing program called Teams. The company plans to add a new portal to Teams, called Viva Engage. Reportedly, Viva Engage will enable co-workers using Teams to share video stories that document their activities.

Perhaps most notably of all, though, is a new offering from Microsoft that will address the cloud-based needs of government and other public-sector entities.

It’s called Microsoft Cloud for Sovereignty, and the company just announced it in a blog posting. This product is designed to help public-sector customers “build and digitally transform workloads in the Microsoft Cloud while meeting their compliance, security and policy requirements.”

The features of Microsoft Cloud for Sovereignty include Sovereign Landing Zone, which can help the client simplify and streamline its deployment workflow, and Double Key Encryption, which allows users in Microsoft 365 to classify e-mail messages and documents as “sensitive.”

MSFT Stock: An All-Weather Tech Holding

As you can see, Microsoft is a relentless innovator with a range of unique products and features. In the cloud and elsewhere, Microsoft continues to develop best-in-class products for individuals, businesses and even governments.

So really, a $330 price target is quite realistic and might actually be too modest. There’s no denying that economic conditions will vary over time. Yet, Microsoft will weather the storms and continually demonstrate its outstanding value to the shareholders.

On the date of publication, Louis Navellier had a long position in MSFT.  Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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