July Charts of Interest: The Widespread Influence of AI Spending
In this month’s charts of interest, we look at current trends and reasons to be optimistic about the second half of 2026.
Charles Rotblut
Stock Evaluator: Microsoft Corporation (MSFT)
8,013 followersMicrosoft Corporation MSFT
$491.23
3.58
0.73%
August 4, 2026 10:01:21 AM
EST
Volume: 9,280,041
After Hours: $120.37
0.15
|
0.12%
November 10, 2021 7:59 PM
EST
Volume: 72,713
USD
NASD | DELAYED PRICE
| SECTOR | INDUSTRY |
| Information Technology | Software |
A+ Stock Grade Summary:
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COMPANY SUMMARY
Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. It operates through three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.
Commentary & Analysis
Discovering Growth Beyond the Headlines
Two growth investing strategies emphasize sustainable metrics, valuation awareness and avoiding glamour stocks.
John Bajkowski, Cynthia McLaughlin, Dan Boyle
Three Ways to Diversify From a Top-Heavy S&P 500
The high level of concentration in the S&P 500 continues to drive its performance and distorts how the index and its typical constituent are performing.
Charles Rotblut
Economic Moats: The Engine Behind Long-Term Earnings Power
Sustainable value creation requires a competitive advantage that has both magnitude and duration.
Brian Haughey
The Outsized Influence of AGI on Your Tax Return
Your adjusted gross income (AGI) carries more importance on your tax return than many taxpayers likely realize.
Charles Rotblut
Financial Summary
| Share Statistics | MSFT | Industry Median |
Percentile (All Stocks) |
|
| Market Cap (Mil) | $3,621,067.3 | $1,025.0 | 100% |
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| Shares Out (Mil) | 7,443.0 | 76.4 | 99% |
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| Institutional Ownership | 100.0% | 79.3% | 99% |
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| Float (Mil) | 7,414.5 | 57.2 | 99% |
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| Beta | 1.10 | 1.01 | 65% |
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| Avg Daily Volume (000s) | 45,295 | 782 | 99% |
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| Price Change (52-week) |
(8.6%) | 58.4% | 37% |
|
| Growth | MSFT | Industry Median |
Percentile (All Stocks) |
|
| Sales (5yr) | 14.6% | 14.7% | 72% |
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| Net Income (5yr) | 16.9% | 10.1% | 67% |
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| EPS (5yr) | 17.4% | 16.0% | 63 |
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| Dividends (5yr) | 10.2% | 0.0% | 96% |
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| Cash Flow (5yr) | (73.9%) | (15.3%) | 2% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 27 | 35 | 33 | |
| Current EPS | $4.713 | $19.673 | $23.469 | |
| Month Ago EPS | $4.623 | $19.397 | $22.628 | |
| # Rev Up | 1 | 1 | 1 | |
| # Rev Down | 1 | 0 | 0 | |
| Three Months Ago EPS | $4.614 | $19.324 | $22.491 | |
| Year/Year Chg | (2.0%) | 9.6% | 58.3% | |
| Financials | MSFT | Industry Median |
Percentile (All Stocks) |
|
| Sales (TTM) (Mil) | $331,839 | $345 | 100% |
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| Net Income (TTM) (Mil) | $133,749 | ($2) | 100% |
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| EPS (TTM) | $18.004 | ($0.100) | 97% |
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| Operating Cash Flow (TTM) (Mil) | $182,935 | $30 | 100% |
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| Net Cash Flow (TTM) (Mil) | ($9,307) | $0 | 0% |
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| Long-Term Debt (Q1) (Mil) | $109,903 | $35 | 99% |
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| Enterprise Value (Q1) (Mil) | $3,502,962 | $991 | 100% |
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| Valuation | MSFT | Industry Median |
Percentile (All Stocks) |
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| P/B | 8.19 | 3.27 | 87% |
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| P/E | 27.2 | 35.8 | 64% |
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| Dividend Yield | 0.7% | 0.0% | 64% |
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| PEG (5yr hist) | 1.6 | 2.1 | 60% |
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| Ratios | MSFT | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 67.9% | 69.8% | 79% |
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| Net Margin | 40.3% | 0.6% | 94% |
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| ROA | 19.4% | (1.2%) | 96% |
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| ROE | 34.0% | 1.6% | 89% |
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| Liabilities to Assets | 41.7% | 46.4% | 32% |
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| F-Score | 6 | 5 | 69% |
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Passing Stock Screens
As of 8/3/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Buffettology: EPS Growth
Factors: Quality, Growth
Buffett approach seeking consumer monopolies selling at a reasonable price.
| Performance Since Inception: | 12.5% |
| +/- S&P 500: | +5.0 |
GURU STRATEGY
Lakonishok Screen
Factors: Value, Momentum
Identifying stocks trading at a discount to their industry norms but showing recent price strength and upward earnings revisions.
| Performance Since Inception: | 13.2% |
| +/- S&P 500: | +5.7 |
FACTOR STRATEGY
P/E Relative Screen
Factors: Value, Earnings Estimates
A screen that looks at the relationship of a stock's price-earnings ratio to that of the industry and market.
| Performance Since Inception: | 13.7% |
| +/- S&P 500: | +6.2 |
GURU STRATEGY
Buffettology: Sustainable Growth Screen
Factors: Quality, Growth
Buffett approach seeking consumer monopolies selling at a reasonable price.
| Performance Since Inception: | 13.3% |
| +/- S&P 500: | +5.8 |
