#2 - Microsoft (NASDAQ:MSFT)
Another popular tech stock on this list is Microsoft (NASDAQ:MSFT). During this pandemic, tech stocks have started to behave like blue-chip stocks. For example, despite beating estimates on the top and bottom lines, Microsoft stock has been pretty flat since the beginning of August.
But when you’re considering a stock such as Microsoft, you look beyond the short term. As many businesses continue to perfect a remote work model, Microsoft’s Teams, a competitor of Slack (NYSE:WORK), is benefiting. And the company is set to release a new version of its Xbox gaming console later this year.
Once again, there is a story beyond just the company’s profitable products and services. In the trailing twelve months ending in June, Microsoft had a free cash flow of $4.52 billion and a debt-to-equity ratio of just 0.57%.
Microsoft does pay a small dividend, but like Apple, you’re buying this stock for growth. And investors who bought MSFT stock five years ago have been rewarded with a 400% gain. That’s not a bad reward for buying and holding.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.
Read More - Current Price
- $406.32
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 32 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $452.61 (11.4% Upside)
