Microsoft Corporation stock is fairly priced now. It may be one of the cheapest tech stock that has been left out of the recent tech rally.
Let’s compare a few TECH stocks.
| MSFT | AAPL | SNDK | |
| P/E | 15.71 | 21.36 | 19.04 |
| Forward P/E | 12.99 | 16.28 | 13.88 |
| P/B | 5.69 | 5.55 | 1.95 |
apple stock is clearly overpriced. However, I believe it may continue to rally as the bull spirit lives on.
I chose $SNDK because this stock rallied and almost doubled since last November.
$MSFT is trading at only 15X P/E and it used to be trading at 25X P/E. I do think there is strong upside potential for MSFT. About 30% upside.
MSFT is a TECH buy.
Technicals. The stock bounced on its 23.6 FIB line. This signals a very strong bullish sentiment for MSFT.
Compare the chart pattern with that of APPLE. $AAPL
Notice the Head and Shoulder formation that has been broken down in this AAPL stock chart.
Look at the MSFT stock chart again, you should be able to spot the similar Head and Shoulder formation. Most probably, it will follow AAPL lead and break out. It will not be a head and shoulder chat pattern.
Cut the long story short. MSFT is a buy at $28.5. Take profit at $30 and you should be able to buy it back again at $28.7
No comments:
Post a Comment