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

Correction: An earlier version of this story incorrectly indicated Microsoft's stock had closed lower.

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) rose 38 cents or 1.4% average daily volume of 58 million shares. The stock ranged in price between $27.05-$27.48.
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Microsoft Corporation develops, licenses, and supports software products and services; and designs and sells hardware worldwide. Microsoft Corporation has a market cap of $224.47 billion and is part of the technology sector. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are up 2.9% year to date as of the close of trading on Thursday. Currently there are 20 analysts that rate Microsoft Corporation a buy, no analysts rate it a sell, and eight 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, expanding profit margins, notable return on equity and increase in stock price during the past year. 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).

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