LONG MSFT BREAKOUT, STRONG SUPPORT, SWING TRADE, TOP TECH PICK
The fundamental are really strong for this MSFT. With the recent announcement of partnering with GM and investing 22B on the cruise from GM. EV market is now getting attention from big tech companies likes apple who have plan to get into. Microsoft investing in cruise which is ahead of tesla in certain tech feature and automation. Based on its current prices it just broke resistance levels and if it continues which seems highly probable going into earrings it will gap up to $230+ easily.
Forecast:
Using the Bloomberg terminal the average one year target price for MSFT is $242. This will yield a 8%+ return from its current price. Its high target price is at $278 and it's low target price is at $200. Considering the stock price is already at $224 the down side is only -$24 or (-10.71%). It leaves an upside of +$54 or (24.11%). Clearly there is more upside in this investment then downside.
In terms of the Industry Analysis; the technology sector is outperforming every other industry. MSFT is classified under software sub industry which is one of the best performing sub industries. The company has essential products especially like TEAM which is fairly need but is already competing with other companies like Slack. It's Azure cloud program is doing great in terms of growth. It's revenue growth rate is 48% over the last quarter. Microsoft’s current and future revenue. Office Commercial and consumer products are both growing – unsurprising in the work-from-home era. Additionally, Microsoft Teams has reached 115 million daily active users, up from 75 million in April.
Overall, the current price makes this company undervalued. It broke a resistance level and will continue to gap due to sub industry analysis, price target, technical analysis, fundamental analysis. This company will continue to growth due to covid stay at home work. Its products and remote service on top of having Azure positions its in great spot to increase in value.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.