Microsoft (MSFT) Down In Pre-Market Trading
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Microsoft as such a stock due to the following factors:
- MSFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.3 billion.
- MSFT traded 73,322 shares today in the pre-market hours as of 9:01 AM.
- MSFT is down 2% today from yesterday's close.
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More details on MSFT:
Microsoft Corporation develops, licenses, markets, and supports software, services, and devices worldwide. The company's Devices and Consumer (D&C) Licensing segment licenses Windows operating system and related software; Microsoft Office for consumers; and Windows Phone operating system. The stock currently has a dividend yield of 2.9%. MSFT has a PE ratio of 17.3. Currently there are 11 analysts that rate Microsoft a buy, 2 analysts rate it a sell, and 12 rate it a hold.
The average volume for Microsoft has been 36.8 million shares per day over the past 30 days. Microsoft has a market cap of $351.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.82 and a short float of 0.8% with 2.13 days to cover. Shares are down 9.5% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Microsoft as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 8.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that MSFT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.24 is high and demonstrates strong liquidity.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for MICROSOFT CORP is rather high; currently it is at 67.45%. Regardless of MSFT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 22.14% trails the industry average.
- You can view the full Microsoft Ratings Report.
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