Sentiment for the stock is virtually all positive. Of 47 analysts covering the stock, all but one have a Buy or Strong Buy rating, and the lone dissenter rates the stock at Hold. At a share price of around $274.00, the potential upside based on a median target of $368.00 is about 34.3%. At the high target of $411.00, the implied gain is 50%.

For its third quarter of fiscal 2022, revenue is forecast at $49.05 billion, down about 5.2% sequentially but up 17.6% year over year. Adjusted EPS are forecast at $2.20, down 11.4% sequentially and up 12.8% year over year. For the full fiscal year, current consensus estimates call for EPS of $9.44, up 18.4%, on revenue of $198.73 billion, up 18.2%.

Microsoft stock trades at 29.0 times expected 2022 EPS, 25.6 times estimated 2023 earnings of $10.71 and 22.0 times estimated 2024 earnings of $12.46 per share. The stock’s 52-week range is $238.07 to $349.67. Microsoft pays an annual dividend of $2.48 (yield of 0.91%). Total shareholder return over the past year was 7.4%.

Visa

Another Dow component reporting after markets close Tuesday is credit card issuer Visa Inc. (NYSE: V). Over the past 12 months, the stock price has declined by about 7.9% and dropped to a 52-week low in early March. Investors have not reacted with a vigorous lift to rival American Express’ solid earnings report last week, likely due to continued concerns about inflation and its impact on consumer spending.

Analysts are strongly bullish on the stock, with 31 of 35 brokerages rating the shares a Buy or Strong Buy. The other four have a Hold rating. At a share price of around $207.00, the implied gain based on a median price target of $272.50 is about 31.6%. At the high price target of $304.00, the upside potential is 46.9%.

For Visa’s second quarter of fiscal 2022, revenue is forecast at $6.82 billion, down 3.3% sequentially and up 19.0% year over year. Adjusted EPS are forecast at $1.65, down 8.7% sequentially and up 19.6% year over year. For the full fiscal year, current consensus estimates call for EPS of $7.07, up 19.6%, on revenue of $28.43 billion, up 17.9%.

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Visa stock trades at 29.4 times expected 2022 EPS, 24.8 times estimated 2023 earnings of $8.37 and 21.4 times estimated 2023 earnings of $9.74 per share. The stock’s 52-week range is $186.67 to $252.67. Visa pays an annual dividend of $1.50 (yield of 0.72%). Total shareholder return for the past 12 months was negative 7.9%.