Microsoft is the IBD Stock Of The Day as it prepares to release its March-quarter earnings report while trading in a tight pattern. Microsoft stock rose 1.1% to close at 427.93, just below its all-time high of 430.82 reached on March 21. The company is on pace to form a three-weeks-tight pattern with a potential buy point of 428.67, and is also technically in the 5% buy zone from a bounce off its 10-week moving average line.
Investment bank Morgan Stanley raised its price target on Microsoft stock to 520 from 465, maintaining an overweight rating. Analyst Keith Weiss predicts that Microsoft’s earnings per share will double by fiscal 2029 due to its leadership in generative AI. Microsoft’s strong positioning across tech, cloud, and GenAI, combined with efficient operations, is expected to drive a 14% 5-year revenue CAGR and a 16% EPS CAGR. The upcoming catalyst for Microsoft stock could be its fiscal third-quarter earnings report, scheduled for late April.
Microsoft is included in four IBD stock lists: SwingTrader, IBD 50, Long-Term Leaders, and Tech Leaders. The company’s consolidation and strategic focus on generative AI have caught the attention of investors, positioning it for potential growth in the coming years. Analysts are optimistic about Microsoft’s future performance, highlighting its strong positioning in core growth drivers and operational efficiency.