5 Best Engineering Stocks to Buy Now

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based tech giant with a diverse product range including devices, software, storage systems, and more. The company employs 221,000 people all over the world and has offices in around 190 countries. As of 2021, the company employed more than 100,000 software engineers.

On April 25, Microsoft Corporation (NASDAQ:MSFT) announced its fiscal third quarter 2023 results after which the shares climbed 9%. The non-GAAP EPS reported by the company was $2.45, beating the estimates of $2.23 and the revenue grew by 7% YoY to $52.86 billion. The increase was owed to the growth of segments of productivity and business services, intelligent cloud, and personal computing which increased by 11%, 16%, and 9%, respectively.

On April 26, Deutsche Bank increased the price target on Microsoft Corporation (NASDAQ:MSFT)’s stock to $340 from $310 after the company published an impressive third quarter 2023 earnings report. The firm has a positive outlook on the company because of its record of execution and increases in market share.

Microsoft Corporation (NASDAQ:MSFT) is taking steps to enter the cloud gaming sector. In light of that, on April 28, the company reported partnering with Nware, a cloud gaming platform under which the partnership’s duration is 10 years.

Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its first-quarter 2023 investor letter. Here is what it said:

“Microsoft Corporation (NASDAQ:MSFT)’s fundamentals have largely stayed intact despite the headwinds many technology companies are facing due to the macroeconomic environment. While growth has decelerated below our longer-term target (we expect low-double-digit revenue growth over the next 3-5 years), we believe the deceleration should prove to be ephemeral. Azure and Office Commercial remain bright spots, while Windows OEM has been and will continue to be a drag over the next few quarters. With respect to Azure, even at a decelerated rate, the business continues to grow well. After eight consecutive quarters of Azure’s top line growth being in the mid-to-high-40s range, over the last two quarters, growth has been 42% and 38%, respectively. Microsoft is a scaled business with multiple and interlocking competitive advantages, and we believe the company will compound at high rates for a long period of time.”

You can also look at the 10 Best Auto and Truck Dealership Stocks to Buy and 10 Best Computer Hardware Stocks To Buy Now.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.