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BETTER STOCK PICK: APPLE OR MICROSOFT?
If you’re new here, my name is Craig Bailey, I’m the creator of Financialseeds.net, where I share a Bible-based approach to financial freedom.
One thing I like to do is share wisdom that will allow people to invest more wisely, so they can leave a legacy for the people they love. In this message, I want to talk about Apple and Microsoft stock.
Both are great companies, but let’s see which is a better stock pick — right now.
As most of us know Apple is known as a hardware company, meaning they make the computers, they make the phones and they make the physical products.
Microsoft, on the other hand, is a software company that makes the programs that typically go into the hardware, but lately, they’ve been trying to dabble with hardware. How do we know which one is a better investment?
Let’s dig into the businesses to see which is a better stock pick.
First, let’s look at Apple. We want to start with the fundamentals of the actual business. Apple has a projected sales growth of -3.9% for the year 2019. Apple’s projected earnings per share growth is 11.73%. The company’s P/E ratio is 14.49, which represents a low demand considering the S&P 500’s P/E ratio is around 21.
Now, let’s take a look at the fundamentals of Microsoft. Microsoft has a projected sales growth of 12.4%. The company has projected earnings per share growth of 12.60%. And Microsoft’s P/E ratio is 25.07, which represents an above average demand for the stock.
Looking at the fundamentals, we see that Microsoft gets 1 and Apple gets 0, but we also need to look at the technicals. We also need to look at what the analyst and institutions are saying about the stock.
Now let’s get into Apple’s current technicals which represent more of a neutral position. The candlestick chart shows that Apple’s stock price is consolidating around a resistance level, so it can go either up or down from here.
On the other hand, you see that Microsoft is showing a wedge up pattern which is more of a bullish pattern. This is a sign that the stock price can be moving higher.
Looking at technicals, the edge also goes to Microsoft. So, Microsoft 2 and Apple 0. But, let’s see what the analyst and institutions are saying about these two stocks.
The analyst consensus target price for Apple is 178, and currently, Apple share price is 180. This represents that the stock is already slightly overextended. Looking at Microsoft, analyst consensus target price is 125, and currently, the share price is 113. This represents an upside of more than 10%
So, based on the analyst target price recommendations the edge also goes to Microsoft.
After looking at the fundamentals, the technicals, and what the analyst and institutions are saying, Microsoft appears to be the better investment right now. Things could change, but currently, Microsoft looks a little better.
If you want to learn how to find great stocks like Microsoft and invest with them with this little as $5, check out my free master class titled “$5, 5-Minute Investing Plan.” You can start watching absolutely free.
Just click this link: https://financialseeds.net/5-dollar-5-minute/
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