Market Update: Following Shares of Microsoft Corporation (NASDAQ:MSFT) - Wagner Review

Sharp investors are usually looking for true bargains in the stock market. Finding these stocks can help give the stock portfolio a boost. Shares of Microsoft Corporation (NASDAQ:MSFT) have come into focus recently. Checking in on the stock, we can see that it has been trading near the $132.32 level. Going forward, the investment community will be closely monitoring shares looking for signs of positive momentum. Investors will often follow the current stock price relative to its 52-week high and low levels. The 52-week high is presently 132.6, and the 52-week low is sitting at 94.13. When the stock is trading near the 52-week high or 52-week low, investors may pay increased attention to see if there will be a move through that level. Scanning back over the past 12 weeks, the stock has moved 10.06%. Heading back to the beginning of the calendar year, we can see that shares have changed 30.27%. Over the last 4 weeks, shares have seen a change of 2.63%. Over the last 5 sessions, the stock has moved 3.52%.

Even professional traders can sometimes guess wrong about market direction. Many traders may have to balance emotion with the fear of missing out on a strong market move. Investors may be tempted to jump on the bullish bandwagon when stocks are powering higher. Investors on the wrong side of the market swing may have to consider what may be in store over the next few months. It’s only natural to pause and take a little breather once in a while. Investors may be chomping at the bit to buy up the dips if the market continues to advance. Fresh buying opportunities can surface at any moment, and the prepared trader may be poised to take full advantage. Keeping a close watch on earnings beats may help investors catch the wave early enough to secure some future profits.

Sell-side analysts have the capability of providing stock ratings for companies that they cover. According to analysts polled by Zacks Research, the current average broker rating on shares of Microsoft Corporation (NASDAQ:MSFT) is 1.14. This average rating includes analysts who have offered Sell, Buy and Hold ratings on the stock. This rating falls on a numeric scale from 1 to 5. A score of 1 would indicate a Buy recommendation, and a score of 5 would represent a Sell recommendation. Out of all the analysts offering ratings, 21 have pegged the stock a Strong Buy or Buy, based on data provided by Zacks Research.

Tracking the current quarter consensus EPS estimate for Microsoft Corporation (NASDAQ:MSFT), we have noted that the number is currently 1.21. This estimate is using 14 contributing analysts polled by Zacks Research. For the last quarter, the company posted a quarterly EPS of 1.14. Sell-side Wall Street analysts study companies and provide their opinions of where the stock might be going in the future. A lot of weight is given to analyst estimates, and earnings beats or misses revolve around these predictions. Sometimes these estimates are very close to the actual, and other times they are not. When a company announces actual earnings results, a large surprise factor can result in increased volatility. If a company beats estimates and posts a positive earnings surprise, the stock may see a near-term bump in price. On the flip side, a negative surprise may move the stock lower. Based on the unknown, many investors may choose to trade with caution around earnings releases.

Analysts have set a target price on shares of Microsoft Corporation (NASDAQ:MSFT). The current consensus price target is $138.29. Wall Street analysts often provide price target projections on stocks that they cover. Price target projections can be created using a wide variety of methods. Many investors will closely track stock target prices, especially when analysts make updates. A thorough research report will generally offer detailed reasoning for a certain target projection. Some investors may watch sell-side targets very closely and use the information to help with their own stock research.

Investors who have stayed on the sidelines may be considering if the markets will continue to rally higher. Staying vigilant and watching for signs of the next bear may prove to be a crucial element for helping to guide certain portfolio moves. Keeping an eye on historical corrections as well as sentiment and technicals, may help provide the proper insight needed. Investors may be mindful of any meaningful pullback or correction, and they may have a certain percentage in mind for when things seem to be getting out of hand. Cautious optimism may prove to be a profit saver when the bearish winds start to blow. Investors may need to figure out a plan for when to take some profit off the table. Conducting thorough fundamental research on stocks even after they have broken out may help the investor understand the reason behind the move, and whether it is likely to continue or if it is just a temporary spike.

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