To The Moon

Markets have been an absolute disaster lately. Over the last few weeks, the Dow Jones Industrials lost about 4,000 points. The NASDAQ lost about 3,000 points while the S&P 500 sank about 800 points. That’s all thanks to the Federal Reserve, sky-high inflation, uncertainties with Russia and growing fears of recession.

However, fear could soon turn into opportunity, as markets become wildly oversold and bargain stocks begin to surface. In fact, as we’ve learned from Warren Buffett, Baron Rothschild and Sir John Templeton, fear can often lead to riches. For example, Buffett tells us to be greedy when others are fearful, and fearful when others are greedy. Baron Rothschild tells us to buy when there’s blood in the streets. Sir John Templeton tells us to buy on excessive pessimism.

Also, it’s tough to ignore some of these bargain stock pullbacks.

Microsoft (MSFT)

Oversold with a dividend yield of around 1%, beaten-down shares of Microsoft (NASDAQ:MSFT) are oversold. Not only did it just catch support dating back to June 2021, it’s oversold on RSI, MACD, and Williams’ %R. From a current price of $256.96, I’d like to see it challenge resistance around $290, near-term.

Earnings have been strong, with the company delivering revenue of $49.4 billion, an 18% jump year over year. That was also above estimates for $47.5 billion. Also, Tigress Financial analyst Ivan Feinseth just reiterated a “buy” rating on the stock, with a price target of $411.

As noted by Barron’s contributor Karishma Vanjani, “Feinseth bases his upbeat rating on the belief that large and small enterprises will continue their adoption of Microsoft’s Cloud, Office, and Teams products as digitization accelerates. He also thinks the tech giant will see increasing gaming subscription success and pointed to the fiscal third-quarter results as evidence.”

$Microsoft(MSFT)$