Stock Research Report for MSFT as of 3/26/2012 - Chaikin Power Tools

Page 1

Microsoft Corp (MSFT)

Price: $31.98

Industry: Computer Software-Services Chaikin Power Gauge Report | Generated: Mon Mar 26 12:22 EDT 2012 Power Gauge Rating

MSFT - Bullish TM

The Chaikin Power Gauge Rating earnings performance.

for MSFT is bullish due to very strong

MSFT's earnings performance is very strong as a result of a relatively low projected P/E ratio. An appraisal of MSFT's financial metrics show a high return on equity.

News Sentiment Rating

Bearish MSFT Microsoft Co..

March 26, 2012

TM

Chaikin Sentiment Gauge for MSFT is bearish. There is currently a significant negative sentiment within news stories concerning MSFT.

News Sentiment :Negative

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics Rating

Financial Metrics

Neutral

LT Debt/Equity Ratio

MSFT's financial metrics are neutral. The company yields a high return on shareholder's equity and may be overvalued.

Price to Book Value

The rank is based on a high long term debt to equity ratio relative to its industry group, high price to book value ratio, high return on equity and relatively high cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

2.86

Price/Book

4.20

Return on Invest

32.7%

LT Debt/Equity

0.21

Price/Sales

3.84

Return on Equity

39.4%

Earnings Performance

TTM

Earnings Performance Rating

Very Bullish

Earnings Growth

MSFT's earnings performance has been very strong. The company is priced relatively low compared to next year's projected EPS and has a history of strong earnings growth.

Earnings Surprise

Earnings Trend

The rank is based on high earnings growth over the past 3-5 years, a relatively low projected P/E ratio and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

06/07

06/08

06/09

06/10

06/11

51,122.00

60,420.00

58,437.00

62,484.00

69,943.00

15.45%

18.19%

-3.28%

6.93%

11.94%

$1.44

$1.90

$1.63

$2.13

$2.73

19.01%

31.94%

-14.21%

30.67%

28.17%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.62

$0.57

-0.05

Quarterly EPS Yearly EPS Factor

$2.73

$2.69

-0.04

Actual EPS Growth

Est EPS Growth

Change

9.84%

8.83%

-1.01

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$0.76

$0.78

$0.02

1 Qtr Ago

$0.68

$0.68

$0.00

2.63

06/10

$0.40

$0.75

$0.46

$0.52

$2.13

0.00

06/11

$0.63

$0.78

$0.62

$0.70

$2.73

2 Qtr Ago

$0.58

$0.69

3 Qtr Ago

$0.56

$0.56

$0.11

18.97

06/12

$0.68

$0.79

-

-

-

$0.00

0.00

Fiscal Year End Month is June.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Neutral

Relative Strength vs Market

Price and volume activity for MSFT is neutral. MSFT is experiencing sustained buying and is in a decelerating price trend compared to 4 months ago.

Chaikin Money Flow

Price Trend

The rank for MSFT is based on positive Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and a decreasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether MSFT is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Factor

52 Week High

32.85

52 Week Low

23.70

% Change YTD Rel S&P 500

12.47%

Expert Opinions

Volume Activity Value

Factor

Value

% Change Price - 4 Weeks

2.04%

Average Volume 20 Days

44,898,756

% Change Price - 24 Weeks

21.53%

Average Volume 90 Days

52,343,150

% Change Price - 4 Wks Rel to S&P

-0.42%

Chaikin Money Flow Persistency

% Change Price - 24 Wks Rel to S&P

1.33%

73%

Expert Opinions

Neutral

Earnings Estimate Revisions

Expert opinions about MSFT are neutral. Shorting of MSFT is low and insiders are not net buyers of MSFT's stock.

Short Interest

Insider Activity

The rank for MSFT is based on a low short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and price strength of the stock versus the Computer Software-Services industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.57 0.65 Current

Current FY

2.69

Analyst Recommendations

7 Days Ago % Change 0.58 0.65

-1.72% 0.00%

30 Days Ago % Change 2.68

0.01

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

2

2

2

Curr Yr

1

1

3

1

Next Qtr

1

1

1

2

Next Yr

3

0

3

1

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for MSFT

MSFT's Competitors in Computer Software-Services Company

Power Gauge

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

MSFT

9.84%

8.83%

32.57%

1.35

11.81

69,943

CA

3.31%

9.50%

19.52%

1.35

13.09

4,429

SYMC

8.78%

9.00%

11.34%

1.38

13.38

6,190

SAP

10.04%

12.30%

23.94%

1.41

18.00

18,506

VMW

30.62%

23.67%

19.22%

2.47

70.68

3,767

ADBE

11.64%

10.00%

19.75%

1.70

19.00

4,216

INTU

10.53%

14.83%

16.90%

1.50

24.56

3,851

ORCL

20.32%

14.00%

25.49%

0.89

12.47

35,622

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Company Details

Company Profile

Microsoft Corp ONE MICROSOFT WAY REDMOND, WA 98052-6399 USA Phone: 425-882-8080 Fax: 425-936-7329 Website: http://http://www.microsoft.com Full Time Employees: 90,000 Sector: Computer and Technology

Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft software includes scalable operating systems for servers, personal computers, and intelligent devices; server applications for client/server environments; knowledge worker productivity applications; and software development tools. The Company's online efforts include the MSN network of Internet products and services and alliances with companies involved with broadband access and various forms of digital interactivity.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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