With a dividend yield of 0.95%, beaten down shares of Microsoft (MSFT) are oversold. Not only did it just catch support dating back to June 2021, it’s oversold on RSI, MACD, and Williams’ %R.
Earnings have been strong, too. The company just delivered revenue of $49.4 billion, an 18% jump year over year. That was also above estimates for $47.5 billion. Also, Tigress Financial analyst Ivan Feinseth just reiterated a buy rating on the stock, with a price target of $411.
As noted by Barron’s, “Feinseth bases his upbeat rating on the belief that large and small enterprises will continue their adoption of Microsoft’s Cloud, Office, and Teams products as digitization accelerates. He also thinks the tech giant will see increasing gaming subscription success and pointed to the fiscal third-quarter results as evidence.”
We also have to remember that MSFT is one of the strongest companies out there. Morgan Stanley analyst Keith Weiss believes Microsoft could sustain a 15% revenue CAGR through 2026, with commercial growth opportunities, says Barron’s.