The second-largest company in the U.S. has a huge effect on the market. Microsoft (MSFT 1.06%) is the U.S.'s second-largest company by market cap, behind only Apple. This makes it one of the most important companies to keep track of during earnings season.
Investors should remember, though, that Microsoft is forecast to generate 18.5% revenue growth this year and 14% growth next year, alongside 15% earnings growth in both 2022 and 2023.
Microsoft is expected to grow its top line to $332.8B in FY 2026, implying 13.7% annual growth over the next four years.
Based on our forecasts, a long-term increase is expected, the "MSFT" stock price prognosis for 2027-07-16 is 575.760 USD. With a 5-year investment, the revenue is expected to be around +119.55%. Your current $100 investment may be up to $219.55 in 2027.
Microsoft stock is not a buy right now. It needs to form a new base in the right market conditions before setting a potential buy point. Check out IBD's Big Picture column for the current market direction. In a positive sign, MSFT stock has climbed above its 50-day moving average line.
Microsoft has received a consensus rating of Buy. The company's average rating score is 2.97, and is based on 29 buy ratings, 1 hold rating, and no sell ratings.
REDMOND, Wash., March 14, 2022 /PRNewswire/ -- Microsoft Corp. on Monday announced that its board of directors declared a quarterly dividend of $0.62 per share. The dividend is payable June 9, 2022, to shareholders of record on May 19, 2022. The ex-dividend date will be May 18, 2022.
Microsoft earns a 4-star rating as of this writing, while Apple earns a 3-star rating. Microsoft stock is the better stock to buy today from Morningstar's perspective.
O) on Tuesday forecast double-digit revenue growth for the next fiscal year, driven by demand for cloud computing services, and its shares jumped about 4%. Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter, driven by strong growth in its Azure platform.
Microsoft investors can expect more upside
Microsoft's earnings have grown at an annual rate of 18% over the past five years. Looking ahead, analysts expect the company to clock an annual earnings growth rate of 17% for the next five years.
The Bottom Line
Assuming 18% compound annual growth over the next decade, your $10,298 investment in Apple would be worth $53,898.
Most analysts remain bullish on the shares, with 74% rating them a Buy and 23% rating them a Hold, according to FactSet. Only one analyst, or 2.3%, rated them Underweight.
Summary. Thursday morning, Microsoft lowered its fiscal fourth-quarter EPS and revenue guidance due to changes in foreign exchange rates.
Their average Apple stock forecast for 2022 was $184.82, ranging from $210 to $130. According to the algorithm-based forecasting service Wallet Investor at the time of writing (15 July), Apple was “a very good long-term investment”, with the AAPL stock price expected to hit almost $188 over the next 12 months.
Relative to the current share price of US$265, the company appears quite undervalued at a 39% discount to where the stock price trades currently.
The company announced expansion plans in December 2021 for its facility in Noida, India. Over the past two decades, the Microsoft India Development Centre has been growing its footprint across cities including Hyderabad, Bengaluru and most recently its third campus in Noida, inaugurated in January 2021.
Stock Price Forecast
The 37 analysts offering 12-month price forecasts for Microsoft Corp have a median target of 340.00, with a high estimate of 400.00 and a low estimate of 298.18. The median estimate represents a +31.03% increase from the last price of 259.48.
No matter how you look at it, it is clear that Microsoft (as well as the entire tech sector) is currently severely overvalued.
MSFTVolatility Chart
Current Microsoft Corporation volatility is 27.65%.
Plus, Tesla does not pay a dividend to shareholders, which is also an important factor for income investors to consider. As a result, we believe income investors looking for lower volatility should consider high-quality dividend growth stocks, such as the Dividend Aristocrats.
Apple has delivered robust dividend growth
From 2012 to 2021, the company has increased its dividend per share from $0.10 to $0.85.