Microsoft Corporation (MSFT): Today's Featured Computer Software & Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Microsoft Corporation ( MSFT) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day down 2.1%. By the end of trading, Microsoft Corporation fell 78 cents (-2.6%) to $29.08 on average volume. Throughout the day, 54.5 million shares of Microsoft Corporation exchanged hands as compared to its average daily volume of 44.8 million shares. The stock ranged in price between $29.05-$29.82 after having opened the day at $29.53 as compared to the previous trading day's close of $29.86. Other companies within the Computer Software & Services industry that declined today were: THQ ( THQI), down 22.7%, Recon Technology ( RCON), down 12.6%, American Reprographics Company ( ARC), down 11.5%, and Saba Software ( SABA), down 10.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Microsoft Corporation develops, licenses, and supports software products and services; and designs and sells hardware worldwide. Microsoft Corporation has a market cap of $249.38 billion and is part of the technology sector. The company has a P/E ratio of 16, below the S&P 500 P/E ratio of 17.7. Shares are up 15% year to date as of the close of trading on Tuesday. Currently there are 19 analysts that rate Microsoft Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Microsoft Corporation 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, attractive valuation levels, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

Why Amazon's Reported Smart Glasses Might Be Just a Niche Product -- For Now

Your Complete Guide to Living Like Billionaire Warren Buffett

How To Get a Promotion Using Legendary Former GE Head Jack Welch's Strategies

Microsoft Has Been Reborn Under CEO Satya Nadella