Are Investors Shying Away from Microsoft Corporation (NASDAQ:MSFT)?

Microsoft Corporation (NASDAQ:MSFT) are valued at $101.42 at the time of writing and have moved -0.23% since the open.  Smart investors often look for value stocks with upside potential.  

After a recent check, shares of Microsoft Corporation (NASDAQ:MSFT) have been seen trading -1.24% off of the 50-day high and 15.60% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are 1.99% away from the 20-day moving average and 5.08% off of the 50-day average. If we take a wider approach, shares have been trading 15.70% away from the 200-day moving average.

Over the last year, Microsoft Corporation (NASDAQ:MSFT)’s stock has performed 44.33%. For the last six months, the stock has performed 18.51%. From the start of the calendar year, shares have been 18.56%. Zooming in closer, company stock has been 7.69% for the quarter, 4.21% over the past month, and 0.54% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. Microsoft Corporation (NASDAQ:MSFT) current has a Beta score of 1.03.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Microsoft Corporation’s EPS is 3.60.  Their EPS should be compared to other companies in the Technology sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Microsoft Corporation’s  P/E ratio is 28.16. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Microsoft Corporation’s  PEG is 2.29.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 17.00%.  Calculated by dividing Microsoft Corporation’s annual earnings by its total assets, investors will note a return on assets of 5.70%.  Finally, Microsoft Corporation’s return on investment stands at 11.70% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 1.80 for Microsoft Corporation (NASDAQ:MSFT).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.