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.