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 leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Microsoft Corporation 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 $1.8 billion.
- MSFT traded 1.4 million shares today in the pre-market hours as of 9:18 AM.
- MSFT is up 2.2% today from yesterday's close.
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More details on MSFT:
Microsoft Corporation (Microsoft) develops, licenses, and supports software, services, and hardware devices worldwide. The stock currently has a dividend yield of 3.2%. MSFT has a PE ratio of 13.3. Currently there are 10 analysts that rate Microsoft Corporation a buy, no analysts rate it a sell, and 15 rate it a hold.
The average volume for Microsoft Corporation has been 50.5 million shares per day over the past 30 days. Microsoft has a market cap of $296.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.77 and a short float of 0.9% with 1.38 days to cover. Shares are up 33% year to date as of the close of trading on Monday.
rates Microsoft Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- MSFT's revenue growth has slightly outpaced the industry average of 7.8%. Since the same quarter one year prior, revenues rose by 15.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MSFT's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.65, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, MICROSOFT CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- You can view the full Microsoft Corporation Ratings Report.