Signal Review & Gross Margin Update on Microsoft Corporation (NasdaqGS:MSFT) - Stock Standard

Investors may be interested in viewing the Gross Margin score on shares of Microsoft Corporation (NasdaqGS:MSFT). The name currently has a score of 33.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The low score of 33.00000 for Microsoft Corporation indicates a top score for stability and growth.

Individual investors may be going to great lengths to make their hard earned money work for them in the stock market. The stock market can be a scary place for beginners with little to no experience. Studying the ins and outs of the markets can help provide a solid base for the new investor to work with. Many people will jump into the game thinking they are going to easily make large profits in the market. Although this is a possibility, many investors will learn the hard way that sustaining profits over the long-term can be a tough endeavor. Studying all the different company information can take up a lot of time and energy. Some people just don’t have the time they would like to put into stock market study.

At the time of writing, Microsoft Corporation (NasdaqGS:MSFT) has a Piotroski F-Score of 8. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

C Score (Montier)

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Microsoft Corporation (NasdaqGS:MSFT) is 1.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

Microsoft Corporation (NasdaqGS:MSFT) has a current ERP5 Rank of 6848 . The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Shifting gears, we can see that Microsoft Corporation (NasdaqGS:MSFT) has a Q.i. Value of 41.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Active investors are constantly weighing risk and return when trading in the stock market. Every investor has to evaluate their risk appetite at some point. The amount of risk an investor is willing to take on can have a large impact on expected future returns. Some people may be much more comfortable with riskier investments than others. This can greatly vary from one person to the next. Once the individual investor is comfortable with the amount of money on the table, they should be able to spend their energies focused on finding a winning strategy. Finding a winning strategy may involve many different aspects of stock research. Following a plan may help investors plow through downturns in the markets, and being able to change the plan when things aren’t working can also be a help to longer-term portfolio health.

Checking in on some valuation rankings, Microsoft Corporation (NasdaqGS:MSFT) has a Value Composite score of 64. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 56.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Microsoft Corporation (NasdaqGS:MSFT) is 0.172377. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of Microsoft Corporation (NasdaqGS:MSFT) is 0.800239. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Investors are constantly striving to get on top in the stock market. Everyone wants to find that next winner to jumpstart the portfolio. Investors often identify risk preference when trying to sort out asset allocation. Typically, a greater amount of risk may provide a greater chance for growth. Many investors may struggle with the concept of keeping emotion out of choosing stocks. Equity research often requires a high degree of patience, dedication, and practice. Learning everything possible about the markets can help the individual build a good base to work with. Being able to sort out the data to determine what is relevant information can help with those tough investment decisions.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Microsoft Corporation (NasdaqGS:MSFT) for last month was 1.08606. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Microsoft Corporation (NasdaqGS:MSFT) is 1.34020.
Price Range 52 Weeks

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Microsoft Corporation (NasdaqGS:MSFT) over the past 52 weeks is 0.997000. The 52-week range can be found in the stock’s quote summary.

Making smart choices when picking stocks is typically a top priority for successful investors. For new investors with little market knowledge, this can be challenging. Figuring out how to start building the stock portfolio may take a lot of time and effort. When the individual investor decides that they want to manage their own portfolio and make their own trades, the journey has just begun. Many individuals will be tempted to pursue stock trading plans based on advice from friends, colleagues, or family members. Even though certain plans may work for someone else, there is no guarantee that success will transfer to others. Investors often need to do their own research in order to obtain as much knowledge as possible before diving in to the markets.

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