Microsoft is the IBD Stock Of The Day as the software giant trades in a tight pattern ahead of its March-quarter earnings report.
On the stock market today, Microsoft stock advanced 1.1% to close at 427.93. Microsoft shares are trading just below their all-time high of 430.82, reached on March 21.
Based on IBD analysis, Microsoft is on pace to form a three-weeks-tight pattern this week with a buy point of 428.67.
Also, Microsoft stock is technically in the 5% buy zone from a bounce off its 10-week moving average line. That buy zone runs from about 408 to 428.40.
If Microsoft stock continues to trade sideways, it also could form a flat base with a buy point of 430.82. A flat base must be at least 25 trading days on a daily chart.
Microsoft Stock Nabs Price-Target Hike
Microsoft stock on Thursday received a price-target hike from investment bank Morgan Stanley. Analyst Keith Weiss kept his overweight, or buy, rating on Microsoft but raised his price target to 520 from 465.
In a client note, Weiss predicted that Microsoft's earnings per share will double by fiscal 2029. The company is benefiting from its leadership position in generative AI, he said.
Microsoft's "strong positioning for core secular growth drivers in tech, cloud and GenAI, combined with best-in-class operating efficiency drives a 14% 5-year revenue CAGR (compound annual growth rate) and a 16% EPS CAGR," Weiss said.
The next potential catalyst for Microsoft stock could be the company's fiscal third quarter earnings report, due in late April.
Further, Microsoft is on four IBD stock lists: SwingTrader, IBD 50, Long-Term Leaders and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
