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 0.7%. By the end of trading, Microsoft Corporation fell $0.63 (-1.8%) to $34.84 on light volume. Throughout the day, 39,038,133 shares of Microsoft Corporation exchanged hands as compared to its average daily volume of 53,826,900 shares. The stock ranged in price between $34.68-$35.18 after having opened the day at $35.05 as compared to the previous trading day's close of $35.47. Other companies within the Computer Software & Services industry that declined today were: Workday ( WDAY), down 6.5%, ARC Document Solutions ( ARC), down 5.6%, FalconStor Software ( FALC), down 5.0% and Avid Technology ( AVID), down 4.8%.
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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 $297.9 billion and is part of the technology sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 33.5% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Microsoft Corporation a buy, no analysts rate it a sell, and 15 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Catamaran ( CTRX), down 10.9%, China Mobile Games and Entertainment Group ( CMGE), down 9.2%, ChyronHego ( CHYR), down 8.1% and Eplus ( PLUS), down 7.8% , were all gainers within the computer software & services industry with Rackspace Hosting ( RAX) being today's featured computer software & services industry leader.

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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