Dow Jones software giant Microsoft, Wednesday's pick for IBD 50 Growth Stocks To Watch, is above its latest buy point amid this week's Ignite 2023 event. That makes Microsoft stock one of the best stocks to buy and watch in today's market.
Microsoft stock is in buy range past a cup base's 366.78 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 385.12. MSFT stock reversed slightly lower Wednesday midday after hitting an all-time high at 373.13.
Previously, shares climbed above an early buy trigger at 346.20 in early November.
Bullishly, the relative strength line continues to hit new highs, reiterating MSFT stock as a stock market leader. A strong RS line during the early stages of a new uptrend is a big positive.
Microsoft Stock Up Since Quarterly Results
The Redmond, Wash.-based company is still prospering from its beat-and-raise earnings report on Oct. 24. Its cloud computing businesses for the better-than-expected fiscal first-quarter results.
Microsoft earned $2.99 a share on sales of $56.5 billion in the quarter ended Sept. 30, topping Wall Street's estimates. The software leader earned $2.99 a share on revenue of $56.5 billion, year-over-year increases of 27% and 13%, respectively. Sales growth accelerated from 2%, 7% and 8% increases in the previous quarters.
Analysts project 15% earnings growth this year, followed by another 15% bump in 2024, according to MarketSmith.
Microsoft is announcing its latest AI advancements at its Ignite 2023 event Wednesday. At midday, Microsoft unveiled two new chips. The Maia 100 artificial-intelligence chip will compete with Nvidia. Nvidia unveiled a new AI chip earlier this week.
The second chip, a Cobalt 100 Arm chip, will compete with Intel processors.
Coupled with strong and steady long-term earnings growth, Microsoft stock boasts an Earnings Per Share Rating of 97, out of a best-possible 99, according to IBD Stock Checkup. This rating takes into account earnings growth and profit stability over the past three years. The two most recent quarters are weighted more heavily.
Learn How To Time The Market With IBD's ETF Market Strategy
Microsoft stock has a best-possible 99 IBD Composite Rating after a tremendous stock price move since January. That fundamental and technical strength makes Microsoft one of the best stocks to buy and watch.
With the stock market outlook in a confirmed uptrend, investors should be their raising market exposure through buying during strong breakouts.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| First Citizens | 1,450.56 | Cup with handle | |
| Lululemon Athletica | 406.94 | Flat base | |
| ServiceNow | 607.90 | Double bottom |
Source: IBD Data As Of Nov. 14, 2023
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