From Nasdaq: 2025-05-13 07:09:00

Microsoft (MSFT) is a Zacks Rank #2 (Buy) with a D for Value and a B for Growth, known for its Office suite of software. The emerging AI driver, Microsoft 365 Copilot, could reshape the AI space. With a history of beating earnings estimates, the company has an average positive surprise of 5.2% and recently beat earnings by 8.13%.

Microsoft Corp. engages in software development and support, operating through segments like Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The company was founded in 1975 by Paul Gardner Allen and William Henry Gates, III, and is headquartered in Redmond, WA.

MSFT is integrating AI models with Microsoft 365 Copilot, aiding OpenAI in changing its non-profit status. Earnings estimates are on the rise, with projected revenue growth of 13.6% in 2025 and 12.4% in 2026. The forward PE of 33x may seem high, but strong revenue growth could justify the valuation.

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Read more at Nasdaq: Bull Of The Day: Microsoft (MSFT)