Microsoft's stock shows staggering growth rates throughout October
Although investors still have a rather skeptical attitude during October, we start to enter a more investor-friendly time of the year. October is the month where the markets awaken from their traditional summer low and stock prices start to rise again. Arguably, this is a good time of the year to invest. Whether you share this opinion or not, our application can help you analyze the most promising stocks from a seasonal point of view.
This time we have used our resources to analyze US American tech giant Microsoft Corporation. Founded by iconic Bill Gates and Paul Allen, it is the biggest software company in the world. It employs 114,000 people who are engaged in development, manufacturing, licensing, sales and support of software, consumer electronics, personal computers and more.
The company has strenghtened its position in the global market by acquiring other tech giants, like the mobile phone manufacturer Nokia, telecommunications application software Skype Technologies and professional social network LinkedIn.
Below is a chart showing the typical pattern the stock exhibits during the course of a calendar year. These patterns can be discerned at a glance on a seasonal chart, which is calculated by averaging performance of the stock over the past 15 years. The horizontal axis depicts the time of the year, the vertical axis the level of the seasonal pattern (indexed to 100).
As the chart shows, the stock has historically performed very strongly. The stock price in 2017 has increased by more than 300%, compared to 2003. However, there is still an opportunity to pick out a time of the year that has shown stronger growth than the year-round average. The time-period associated with the strongest seasonal performance is highlighted on the chart in blue. It begins on October 10 and ends on November 4.
Microsoft shows 86.67% winning trades
In the examined time-period, Microsoft exhibits a very strong 86,67% Winning Trades, incurring losses only in 2003 and 2011. Not only the frequency is exceptional in this seasonal pattern, the annualized return of 145.66% is truly remarkable.
The bar chart below illustrates this fact. Red bars indicate years in which negative returns were posted, green bars indicate years with positive returns.