Market movers: The Investment Committee's top stocks to watch right now.
Microsoft leads Zacks??? top research picks today, alongside Novartis and RTX, highlighting cloud, pharma innovation and defense demand shaping 2025.
Microsoft is upgraded to a 'strong buy' as recent declines present a compelling entry point for long positions. MSFT's Q1 FY26 revealed higher-than-expected capex driven by AI infrastructure, but Azure's robust 28% YoY growth underpins the investment thesis. Commercial RPO surged over 50% to nearly $400B, signaling strong forward demand and mitigating capex concerns.
Microsoft (NASDAQ: MSFT) has delivered solid returns in 2025, but shares remain below their 52-week high of $553.50.
Microsoft announced Thursday it would buy 3.6 million carbon removal credits from a biofuels plant in Louisiana owned by C2X. The plant, which is slated to begin operating in 2029, will process forestry waste into methanol, which can be used to power ships and planes and as a raw material for chemical manufacturing.
Microsoft (MSFT) concluded the recent trading session at $483.47, signifying a +1.03% move from its prior day's close.
Shares of Microsoft (NASDAQ:MSFT) lost 0.27% over the past five trading sessions after losing 1.58% the five prior.
Microsoft Corporation is upgraded to Buy after a double-digit pullback, with valuation premium narrowing and robust TTM free cash flow growth despite record capex. The MSFT More Personal Computing segment remains a small and underperforming but compelling contributor, with robust margins and Search and news advertising as a standout growth driver. Gaming faces high volatility and a bold strategic pivot toward platform-agnostic, premium experiences. Read a Gaming deep dive in this article.
Our comprehensive multi-factor evaluation indicates that it may be an appropriate moment to reduce exposure to MSFT stock . The core concern is valuation: with the shares trading well above historical multiples, a pullback toward $344 is far from unrealistic.
Microsoft shares have meaningfully fallen since the last quarterly results were released, but the technical picture points to oversold conditions and stabilization. Q1 FY26 delivered $77.7B in revenue (up 18% YoY), with Intelligent Cloud up 28% and Azure revenue up 40%, driving broad-based growth. Operating income rose 24% to $38B, EPS beat by ~13%, and free cash flow surged 33% despite elevated capex for AI and cloud infrastructure.
Our comprehensive multi-factor evaluation indicates that it may be an appropriate moment to reduce exposure to MSFT stock . The core concern is valuation: with the shares trading well above historical multiples, a pullback toward $344 is far from unrealistic.
Microsoft's (NASDAQ: MSFT) long-term trading history is showing a recurring seasonal pattern that may offer investors a notable opportunity ahead of January 2026.