Jim Cramer’s 5 Comeback Stocks

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Microsoft Corporation (NASDAQ:MSFT) is one of the tech names backed by Jim Cramer to make a recovery. Cramer’s Charitable Trust also owns a position in the tech giant. Microsoft Corporation (NASDAQ:MSFT) is one of the top stock picks for 2023 at investment advisories like Baird, Oppenheimer, Wedbush, JPMorgan, and Morgan Stanley.

On November 29, Morgan Stanley analyst Keith Weiss said that investors are concerned that Microsoft Corporation (NASDAQ:MSFT)’s estimates have not been derisked and noted that short-term investor concerns typically fall into two categories – margins and revenue growth. However, he sees a solid and resilient demand signal in the commercial businesses that should lead to improving revenue and EPS growth in the second half of 2023, said the analyst, who argued that Microsoft Corporation (NASDAQ:MSFT)’s “unique positioning as a consolidator” should drive demand that holds up better than investors fear. The analyst has an Overweight rating and a $307 price target on Microsoft Corporation (NASDAQ:MSFT) shares.

According to Insider Monkey’s third quarter database, 269 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 258 funds in the last quarter. Bill & Melinda Gates Foundation Trust is the biggest position holder in the company, with 39.2 million shares worth $9.14 billion. 

Diamond Hill made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.”

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