NEW YORK (TheStreet) -- Shares of Microsoft(MSFT) - Get Report were gaining 0.9% to $47.06 on Tuesday after the computer company announced the new Surface Book laptop, Surface Pro 4 and Lumia 950 family during an event in New York City.
The Microsoft Surface Book is the company's first attempt at making a traditional laptop. The Windows 10 device features a 13.5" display, and an NVIDIA (NVDA) GeForce GPU, which the company claims is great for gamers and others who need high graphics performance, and the latest generation Intel (INTC) CPUs.
Microsoft claims the Surface Book is the most powerful 13-inch laptop, calling it twice as fast as Apple's (AAPL) MacBook Pro. The company says the laptop's battery will last for 12 hours on a single charge.
The Surface Book display is detachable from the keyboard to use as a traditional tablet with support for the company's new Surface Pen.
The Surface Book will start at $1,499. The laptop is available for pre-order on October 7, and will ship on October 27.
The new Microsoft Surface Pro 4, the latest device in the company's line of tablets, brings a larger 12.3-inch display and the latest Intel CPUs into a device that' roughly the same size as last year's model. The company claims the tablet is 50% faster than the MacBook Air, and 30% faster than the Surface Pro 3.
The Surface Pro 4 includes magnetic storage for the upgrade Surface Pen, and can connect to the new TypeCover which boasts a "laptop class" keyboard and a larger trackpad.
Microsoft said the Surface Pro 4 will start at $899. Pre-orders begin October 7, and it will ship on October 27.
Microsoft also announced the new Lumia 950 and 950 XL smartphones at the event. The new Windows 10 smartphones feature 5.2-inch and 5.7-inch displays, respectively, with 20MP rear-facing cameras, 32GB of storage, and liquid-cooling technology. The smartphones will cost $549 and $540, respectively, and will be available in November.
TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate MICROSOFT CORP (MSFT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for MICROSOFT CORP is currently very high, coming in at 73.06%. Regardless of MSFT's high profit margin, it has managed to decrease from the same period last year.
- Despite currently having a low debt-to-equity ratio of 0.44, 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 2.30 is high and demonstrates strong liquidity.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.9%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- MICROSOFT CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, MICROSOFT CORP reported lower earnings of $1.46 versus $2.63 in the prior year. This year, the market expects an improvement in earnings ($2.69 versus $1.46).
- You can view the full analysis from the report here: MSFT