Microsoft Corporation (MSFT) has recently reported solid revenue growth across all its segments for the fiscal third quarter of 2022 and expects the growth to continue in the forthcoming quarters.
Microsoft Corporation (MSFT) has recently reported solid revenue growth across all its segments for the fiscal third quarter of 2022 and expects the growth to continue in the forthcoming quarters. In addition, given that investors have been stacking up on the stock's call option over the past week, is it worth adding MSFT to your portfolio now?
Microsoft Corporation (MSFT) recently shut down its woefully lacking browser, Internet Explorer. With this acquisition, MSFT promises to boost its own cybersecurity research and capabilities.
Also, MSFT intends to use Miburo's tech to partner with other private and public companies to find ways to stop foreign adversaries from threatening customers. As a result, bulls consider this move a huge boon for MSFT's future. “Continued customer commitment to our cloud platform and strong sales execution drove better than expected commercial bookings growth of 28% and Microsoft Cloud revenue of $23.4 billion, up 32% year over year,” said Amy Hood, executive vice president, and chief financial officer of Microsoft.
Here is what could shape MSFT's performance in the near term:
Latest Developments
Recently, MSFT announced Microsoft Viva Sales, a new seller experience application. Viva Sales enhances any CRM system with customer engagement data from Microsoft 365 and Microsoft Teams and leverages AI to provide personalized recommendations and insights for sellers to be more connected with their customers.
This month, The Procter & Gamble Company (PG) and MSFT announced a new multiyear collaboration that will leverage the Microsoft Cloud to help create the future of digital manufacturing at P&G. Also, Accenture (ACN) and MSFT, together with their joint venture Avanade, are joining forces to handle climate change, one of the most critical and urgent challenges for both businesses and people.
Robust Financials
During the third quarter ended March 31, 2022, MSFT's total revenue increased 18.4% year-over-year to $49.36 billion.
Strong Profitability
MSFT's trailing-12-month net income margin of 37.63% is 5.3% higher than the industry average of 604.23%. The Street expects MSFT's revenues to rise 14% in the current quarter, 18.4% in the current year, and 14.1% next year. The EPS is expected to rise 6.5% In the current quarter, 10.1% in the next quarter, and 15.5% next year. In addition, MSFT's EPS is expected to rise at a 16.1% CAGR over the next five years. Out of the 25 Wall Street analysts that rated MSFT, 24 rated it Buy, and one rated it Hold.
MSFT has an overall B grade, which equates to a Buy in our proprietary POWR Ratings system. MSFT has a B grade for Stability and Quality. MSFT's 0.94 beta is consistent with its Stability grade. Among the 56 stocks in the C-rated Software – Business industry, MSFT is ranked #14.
Beyond what I stated above, we have graded MSFT for Growth, Value, and Momentum. Get all MSFT ratings here. The company's robust revenue growth across all segments has raised investor confidence regarding its future performance. MSFT has an overall POWR Rating of B, which equates to a Buy.
MSFT shares were trading at $247.65 per share on Monday morning, up $2.68 (+1.09%). Year-to-date, MSFT has declined -26.04%, versus a -22.73% rise in the benchmark S&P 500 index during the same period.
Source: https://stocknews.com/
John Carter has been a content and ‘ghostwriter' for many popular online publications over the years. John is now our chief editor at NewsGrab.
