Stock

Sell Microsoft as the stock’s bear momentum builds up

Microsoft Corporation (NASDAQ:MSFT) gained 2.44% on Monday to close at $280.72. The stock regained the losses recorded last Friday. However, bearish momentum remains. The recent trend creates the need to re-evaluate the stock’s performance.

Microsoft is a wide-moat technology company. It is able to consistently grow revenues even though the growth rate is low. Microsoft is projected to remain fundamentally strong. The main challenge is in finding new avenues for growth.

At the price of $80.72, Microsoft is trading at a PEG ratio of 2.37. This shows that Microsoft is potentially overvalued. The PE is recorded at 29.44. The stock has poor ratings on momentum, value, and growth investment styles. Microsoft is a sell owing to the performance challenges.

MSFT crossed below the 50-day average, signaling bear control

Source – TradingView

Technical analysis indicates bearish momentum build-up. The MACD’s divergence from the signal continues to expand below the oscillator. The stock is trading below the 50-day moving average. The 10-day and 20-day averages continue to sink.

This is the first time in more than two years that the share price moved below the 50-day average. Ordinarily, Microsoft triggers buy signals when the price touches the 50-day average. Current market jitters indicate that Microsoft will not be sticking to its pattern and is therefore a sell.

Summary

Microsoft is a fundamentally strong company. Market pricing, however, shows that the stock is overvalued and bears have taken control. The analysis recommends selling Microsoft.

The post Sell Microsoft as the stock’s bear momentum builds up appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top