Sentiment for Microsoft stock is virtually all positive. Of 51 analysts covering it, 43 have a Buy or Strong Buy rating, and seven more rate it at Hold. At a share price of around $344, the potential upside based on a median price target of $385 is about 11.9%. At the high target of $450, the implied gain is 30.8%.
For its fourth quarter of fiscal 2023, revenue at the Dow Jones industrial average component is forecast at $55.48 billion, up 5% sequentially and by 7.0% year over year. Adjusted EPS are forecast at $2.55, up 4% sequentially and 14.3% higher year over year. For the full fiscal year that ended in June, consensus estimates call for EPS of $9.63, up 4.6%, on revenue of $11.2 billion, up 6.5%.
Microsoft stock trades at 35.7 times expected 2023 EPS, 31.2 times estimated 2024 earnings of $11.02 and 27.2 times estimated 2025 earnings of $12.62 per share. The 52-week range is $213.43 to $366.78. Microsoft pays an annual dividend of $2.72 (yield of 0.78%). Total shareholder return over the past year was 31.06%.
Visa
The second Dow component reporting late Tuesday is credit card issuer Visa Inc. (NYSE: V). Over the past 12 months, the stock price has risen by 10.7%, including a boost of 15.2% so far in 2023.
Visa has beaten Wall Street earnings and revenue estimates for 12 consecutive quarters, and there is every reason to think that streak will continue. High interest rates and increased consumer spending remain as principal drivers of the company’s results. Free cash flow is worth keeping an eye on. It fell by about a quarter in the second quarter of last year and has been slowing since the fourth quarter of 2022.
Analysts are solidly bullish, with 32 of 38 brokerages rating the shares a Buy or Strong Buy. Another five have Hold ratings. At a share price of around $239, the implied gain based on a median price target of $268 is about 12.1%. At the high price target of $338, the upside potential is 41.4%.
For Visa’s third quarter of fiscal 2023, revenue is forecast at $8.06 billion, up 1.0% sequentially and 10.7% higher year over year. Adjusted EPS are forecast at $2.12, up 1.3% sequentially and by 7.1% year over year. For the full fiscal year ending in September, consensus estimates call for EPS of $8.59, up 14.5%, on revenue of $32.56 billion, up 11.1%.
Visa stock trades at 27.8 times expected 2023 EPS, 24.5 times estimated 2024 earnings of $9.76 and 21.2 times estimated 2025 earnings of $11.75 per share. The 52-week range is $174.60 to $245.37. Visa pays an annual dividend of $1.80 (yield of 0.75%). Total shareholder return for the past 12 months was 11.55%.
Originally published at 24/7 Wall St.
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