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Microsoft Innovation Could Keep It on Top

By:
Lucas Downey
Published: Jun 21, 2024, 18:28 GMT+00:00

Microsoft Corporation (MSFT) is among the biggest companies on the planet in terms of market capitalization. Its continued innovation on several fronts could keep it there for a long time.

Microsoft Building, FX Empire

In this article:

Microsoft has been gaining steam in AI, cloud computing, and smartphone integration, to name just a few growth areas. For instance, the company is putting its Copilot AI capabilities to work on many different products, including the cloud. Plus, MSFT remains the largest investor behind the popular Chat GPT tool. And recently, the company introduced an enhanced integration between Windows machines and Android smartphones.

As for financial performance, Microsoft showed a gross margin of more than 70% in its latest earnings report. It’s also expected to generate per-share earnings of $11.77 in the future.

It’s no wonder MSFT shares are up 19% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Eyes Microsoft Shares

Institutional volumes reveal plenty. In the last year, MSFT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in MSFT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Microsoft.

Microsoft Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MSFT has had strong sales and earnings growth:

  • 3-year sales growth rate (+14.1%)
  • 3-year EPS growth rate (+19.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.1%.

Now it makes sense why the stock has been powering to new heights. MSFT has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Microsoft has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when MSFT was a top pick…rising higher over time:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Microsoft Price Prediction

The MSFT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns MSFT in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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