From Nasdaq.: 2025-06-01 23:27:00

Microsoft (NASDAQ:MSFT) stock has surged 16% in the past month, surpassing the S&P 500 due to strong Q1 earnings and robust Azure growth. Trading around $460, MSFT stock remains a buy with high valuations but minimal concerns. The Trefis High Quality portfolio offers a lower volatility alternative with over 91% returns since inception.

Microsoft’s valuations show it’s expensive compared to the S&P 500, with P/S ratio of 12.6, P/FCF ratio of 26.0, and P/E ratio of 35.1. However, its revenue has grown at 12.0% over 3 years, reaching $262 billion in the last 12 months. Profit margins and financial stability remain strong.

The company’s operating income, OCF, and net income margins are considerably high compared to S&P 500. With a strong balance sheet, Microsoft’s Debt-to-Equity and Cash-to-Assets ratios are impressive. During downturns, MSFT stock has shown resilience compared to the S&P 500, making it a reliable investment choice.

Despite high valuations, Microsoft’s strong financial performance and growth outlook make it an attractive buy at current levels. Strong Azure growth is expected to drive further upside, with a projected valuation of $535 per share. However, risks like economic slowdown could impact sales growth, so investor caution is advised. Consider the Trefis High Quality Portfolio for a less volatile investment option. 1. The stock market saw a significant increase today, with the S&P 500 and Dow Jones Industrial Average both reaching record highs. The S&P 500 closed at 3,500, while the Dow Jones closed at 29,000.

2. In international news, tensions are rising between the United States and China as the U.S. imposes sanctions on Chinese officials for their actions in Hong Kong. This move comes after China passed a controversial national security law in Hong Kong.

3. The COVID-19 pandemic continues to impact the world, with the global death toll surpassing 700,000. Countries are implementing stricter measures to curb the spread of the virus, including mandatory mask-wearing and social distancing guidelines.

4. In sports news, the NBA playoffs are in full swing, with the Los Angeles Lakers and Milwaukee Bucks emerging as top contenders. The Lakers, led by LeBron James, are looking to secure their spot in the NBA Finals, while the Bucks, led by Giannis Antetokounmpo, are aiming for their first championship in 50 years.



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