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MSFTMicrosoft Corporation
$470.67
Financials
AVOID
Analysis updated: Jan 15, 2026

Investment Thesis

MSFT is a market laggard (RS 36/99, Top 64%) with moderate fundamentals. avoid chasing - protect capital. Smart traders skip this one until the setup improves.

Weak relative strength + ordinary growth = Pass

Key Takeaways

Earnings Momentum

+10%
Q2'25
$3.23
+18%
Q3'25
$3.46
+24%
Q4'25
$3.65
+13%
Q1'26
$3.72
Earnings Growing

Price Structure

Broken Structure
Price
$470.67
→
50 DMA
$488.41
→
100 DMA
$500.98
→
150 DMA
$502.07
✓
→
200 DMA
$481.09
Alignment Score: 1/4

MSFT Price Chart

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50 DMA150 DMA200 DMA
LEADERSHIP TEST FAILED

RS Rating 36/99 is in Bottom 36% of market. Minervini target: Top 20% (RS 80+)

Why Not BUY Yet?

RS Rating
36 (Top 64%)→>80 (Top 20%)
EPS Growth
13%→>25% (Strong) or 40%+ (Elite)
Pattern
No base forming→VCP or constructive base
Trend
Weak Downtrend→Above 200 DMA

What Would Change Our Mind?

To turn bullish on MSFT, we need:

Twin Engines Dashboard

Technical Health

RS Rating
36/99
Top 64% (Need 80+)
Trend
Weak Downtrend
Below 200 DMA
RSI (14)
43
NEUTRAL
VCP Setup
COOL
Score: 5/9
Volume
28.5M
+22% vs avg
From Entry
+3.9%
$452.94

Fundamental Horsepower

EPS Qtr YoY
+13%
Growing
EPS 3Y CAGR
+12%
Annual Earnings
Revenue Qtr
+18%
Accelerating
F-Score
6/9
Piotroski Quality
ROE
33%
Return on Equity
EPS Rank
54/99
Percentile

Trade Plan

Stalled Breakout

Broke out 8 months ago at $452.94 — up modestly (+4%) from entry.

Breakout has stalled. Wait for new momentum or a fresh base pattern to develop.

Breakout Date2025-05-14246 days ago
Entry Was$452.94Breakout price
Gain Since+4%From entry
Reclaim$480.9521 EMA support

If/Then Playbook

IF: RS Rating improves to >80
THEN: Re-evaluate for WATCHLIST
IF: Price closes below 200 DMA
THEN: Remove from radar entirely
IF: EPS growth accelerates to >40% next quarter
THEN: Reassess as potential turnaround

Key Price Levels

Resistance

  • 20 DMA$480.72+2.1%
  • 200 DMA$481.09+2.2%
  • 50 DMA$488.41+3.8%
Current$470.67

Support

  • 52W Low$344.79-26.7%

More MSFT Analysis

Fundamental Analysis →Intrinsic Value →Total Return Calculator →

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Frequently Asked Questions

Is MSFT stock a buy now?

MSFT is a market laggard (RS 36/99, Top 64%) with moderate fundamentals. avoid chasing - protect capital. Smart traders skip this one until the setup improves.

What is the buy point for MSFT?

MSFT broke out at $452.94 8 month(s) ago but has stalled (+4%). Wait for fresh momentum or new base pattern.

What is MSFT's RS Rating?

MSFT has an RS Rating of 36/99, meaning it's in the Top 64% of all stocks for relative price performance over the past 12 months. Minervini recommends RS 80+ for momentum trades.

Important Disclosure: This analysis is for educational and informational purposes only. Technical and fundamental indicators are based on historical data and do not guarantee future performance. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.