Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Microsoft Corporation ( MSFT) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Microsoft Corporation 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 $972.7 million.
- MSFT is down 2.3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MSFT with the Ticky from Trade-Ideas. See the FREE profile for MSFT NOW at Trade-Ideas More details on MSFT: Microsoft Corporation (Microsoft) develops, licenses, and supports software, services, and hardware devices worldwide. The stock currently has a dividend yield of 3%. MSFT has a PE ratio of 13.8. Currently there are 10 analysts that rate Microsoft Corporation a buy, 1 analyst rates it a sell, and 13 rate it a hold. The average volume for Microsoft Corporation has been 40.3 million shares per day over the past 30 days. Microsoft has a market cap of $308.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.77 and a short float of 1% with 2.75 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant 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, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 15.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MSFT's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.65, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, MICROSOFT CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.54% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MSFT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full Microsoft Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.