We were a little stunned to see Value Line drop the 3-5 year low price forecast on Microsoft (MSFT) from $50 to $40 — resulting in a significant “dent” in the low total return forecast for the company. The 3-5 year forecast for revenues was relatively unchanged.
Materially Stronger: Amazon (AMZN), CSG Systems (CSGS), Netflix (NFLX)
Materially Weaker: Baidu (BIDU), Microsoft (MSFT), Pandora Media (P)
The Value Line low total return (VLLTR) forecast held steady at 7.3%, unchanged from one week ago.
The S&P 500 (SPY) continues to hover near overbought conditions — we continue to consider the index vulnerable to correction.