Wall Street Bulls Show Enthusiasm for Microsoft (MSFT) Wall Street Bulls Show Enthusiasm for Microsoft (MSFT)

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Looking to invest? Experts often tout Wall Street analyst recommendations as gospel. But is it wise to blindly follow these big-shot pundits? Let’s delve into what the Wall Street bulls are braying about Microsoft (MSFT), and then we’ll unravel the truth about brokerage recommendations and how savvy investors can use them to their advantage.

Microsoft currently boasts an average brokerage recommendation (ABR) of 1.23, suggesting a strong buy sentiment. However, don’t rush to pour your life savings into MSFT just yet. Many studies have shone a light on the little-to-no success of brokerage recommendations in accurately predicting a stock’s potential for price appreciation.

Why so? Well, brokerage firms often have a vested interest in the stocks they cover, leading to a rosy bias in their recommendations. For every β€œStrong Sell” rating, these firms dispense a whopping five β€œStrong Buy” recommendations. It’s a skewed game, and not always in favor of the retail investor.

So, you might wonder, is there a North Star in this stock market wilderness? Behold, the Zacks Rank, a battle-tested tool with an impressive track record that categorizes stocks into five groups from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell). Now, that’s a beacon worth following before setting sail on your investment journey.

Let’s clear the mist about ABR versus Zacks Rank. The ABR is a calculation based solely on brokerage recommendations, while the Zacks Rank is grounded in quantitative models using earnings estimate revisions. It’s like comparing apples to oranges, folks.

Moving on, while the ABR may need dusting off to find the most current scoop, the Zacks Rank is as fresh as morning dew. With analysts constantly revising their estimates, this tool is always timely in mapping future price movements.

Still scratching your head over whether to throw your hat into the MSFT ring? Here’s the lowdown: analysts are getting increasingly starry-eyed about Microsoft’s earnings prospects with a Zacks Consensus Estimate for the current year shooting up to $11.13. This growing optimism has culminated in a Zacks Rank #2 (Buy) for Microsoft. The stars seem to align.

Therefore, the ABR may serve as a helpful compass for investors navigating the stock market labyrinth, but coupling this with the Zacks Rank could be your golden ticket to the chocolate factory.

Feeling the FOMO (Fear Of Missing Out)? Let me spill the beans: our experts have plucked out 7 elite stocks from the Zacks Rank #1 Strong Buys list, known for their penchant for early price pops. Since 1988, this list has trounced the market, boasting an average yearly gain of +24.0%. Don’t be caught napping – dive in and savor the potential spoils.

See the gems now >>

Venture further and download the latest recommendations from Zacks Investment Research. Simply click here.

For those who crave a taste of the full stock analysis report for Microsoft Corporation (MSFT), satiate your hunger here.

And remember, dear reader, hitch your wagon to the right star in the stock market sky. The views of the author may not reflect the great oracle Nasdaq, Inc., so keep that in mind while venturing into the investment cosmos.

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