Trade-Ideas LLC identified

Microsoft

(

MSFT

) as a post-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 is down 3.3% today from today's close.

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More details on MSFT:

Microsoft Corporation, a technology company, develops, licenses, and supports software products, services, and devices worldwide. The stock currently has a dividend yield of 2.8%. MSFT has a PE ratio of 4. Currently there are 16 analysts that rate Microsoft a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Microsoft has been 29.1 million shares per day over the past 30 days. Microsoft has a market cap of $411.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.05 and a short float of 0.6% with 2.18 days to cover. Shares are down 5.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Microsoft as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 2.66, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $10,669.00 million or 11.48% when compared to the same quarter last year. Despite an increase in cash flow, MICROSOFT CORP's cash flow growth rate is still lower than the industry average growth rate of 32.73%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite 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 currently very high, coming in at 70.70%. 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, MSFT's net profit margin of 18.29% compares favorably to the industry average.

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