NEW YORK (TheStreet) -- Microsoft (MSFT) shares are flat at $46.86 in early market trading on Monday after the global technology company announced today that its much anticipated Windows 10 software upgrade will be released on July 29.
The operating system will be released as a free upgrade for customers using Windows 7 and Windows 8.1 on PCs and tablets and will be pre-installed on new Windows 10-ready devices.
Windows 10 will be made available on other devices later this year.
"Windows 10 starts to deliver on our vision of more personal computing, defined by trust in how we protect and respect your personal information, mobility of the experience across your devices, and natural interactions with your Windows devices, including speech, touch, ink and holograms," the company said.
Industry watchers are hoping that the latest iteration of operating system will provide a boost to flagging PC shipments which will drop 6.2% this year, research firm IDC said, according to Bloomberg.
TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.65 is very high and demonstrates very strong liquidity.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for MICROSOFT CORP is currently very high, coming in at 74.02%. Regardless of MSFT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MSFT's net profit margin of 22.94% compares favorably to the industry average.
- You can view the full analysis from the report here: MSFT Ratings Report