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

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 higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.7%. By the end of trading, Microsoft Corporation rose $0.82 (2.6%) to $32.61 on average volume. Throughout the day, 58,348,040 shares of Microsoft Corporation exchanged hands as compared to its average daily volume of 50,135,900 shares. The stock ranged in a price between $31.77-$32.68 after having opened the day at $31.80 as compared to the previous trading day's close of $31.79. Other companies within the Computer Software & Services industry that increased today were: Medidata Solutions ( MDSO), up 20.8%, Mitek Systems ( MITK), up 10.8%, China Mobile Games and Entertainment Group ( CMGE), up 7.8% and LogMeIn ( LOGM), up 7.0%.
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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 $266.7 billion and is part of the technology sector. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 19.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Microsoft Corporation as a buy. 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, increase in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Greenway Medical Technologies ( GWAY), down 22.9%, Crexendo ( EXE), down 8.5%, BluePhoenix Solutions ( BPHX), down 5.7% and Helios and Matheson Information Technology ( HMNY), down 5.0% , were all laggards within the computer software & services industry with Cerner Corporation ( CERN) being today's computer software & services industry laggard.

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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