Is MSFT near a good entry point?

Microsoft (MSFT) is not currently at a BUY point, but near enough that it deserves some attention.

Earnings coming out this week.

Should be $8.05
Next year guidance was $9.22
Year after was $10.55

At $296/share, that works out to earnings of 3.1%.
Growth rate of 15%, which is great.
1 year earnings yield of 3.6%.

That’s nice, but not too exciting with interest rates on the rise.

Morningstar considers $241.5 to be a BUY level.
Fair Value $345.

Good company and currently a solid HOLD, but at what price to Buy more?

Also, how much is too much.
Market Weigh is about 5.8% in S&P500

Fearchar,

Earnings coming out this week.

Should be $8.05
Next year guidance was $9.22
Year after was $10.55

At $296/share, that works out to earnings of 3.1%.
Growth rate of 15%, which is great.
1 year earnings yield of 3.6%.

That’s nice, but not too exciting with interest rates on the rise.

Morningstar considers $241.5 to be a BUY level.
Fair Value $345.

Good company and currently a solid HOLD, but at what price to Buy more?

Also, how much is too much.
Market Weigh is about 5.8% in S&P500

Definitely a solid “Blue Chip” – or “Rule Maker” in Foolspeak.

Every stock portfolio should have a couple to a few “Rule Maker” stocks to provide stability, like ballast in the hold of a ship, but these stocks should not be the whole of a portfolio. You need some growth stocks (“Rule Breaker” stocks in Foolspeak), too. Whether Microsoft (NASDAQ: MSFT) is a suitable “Rule Maker” stock for your portfolio, or not, is a separate question that I cannot answer for you – only you know how well you know the company and its industry (or should that be industries?).

If you don’t have a position and want to acquire one, the best strategy is to “dollar cost average” into it – that is, invest the target dollar amount in equal increments two to four weeks apart over the course of several months to a year – so that you acquire more shares when the stock is at a lower price point and fewer shares when it is at a higher price point, letting volatility work in your favor to average your basis downward.

Norm.

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