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Microsoft Corporation (MSFT) Revenue Growth Could Double

By U.S. News & World Report

With a market capitalization of more than $500 billion, Microsoft Corporation (Nasdaq: MSFT) is one of the largest technology companies in the world. But despite its massive size, Canaccord Genuity analyst Richard Davis says Microsoft’s revenue growth may soon start to accelerate once again.

On Thursday, Davis upgraded Microsoft stock to “buy” and said Microsoft has several unique long-term growth drivers in Microsoft Office Productivity, PC and console gaming, marketing and cloud computing.

[See: The 10 Best Ways to Buy Tech Stocks.]

“In our experience, accelerating growth should at least preserve MSFT’s current valuation and perhaps even drive a bit of [earnings] multiple expansion, which will continue to drive the stock higher,” Davis says.

Most Microsoft investors are well aware of the growth potential of the Microsoft Office 365 upgrade cycle and the company’s rapidly-expanding Azure cloud services segment. Davis says investors are overlooking the massive growth potential of esports, a market which is still in its infancy.

For now, Microsoft’s total revenue is a mix of marginally declining revenue from its legacy business segments and double-digit growth from its top-performing segments.

“As the faster growth segments increase as a percentage of the total, aggregate revenue growth should accelerate, which is generally a driver of multiple expansion,” Davis says.

Canaccord expects Microsoft’s revenue growth to increase from just 6 percent in fiscal 2017 to 12 percent annually by fiscal 2022. Davis says large-cap stocks that catch investors by surprise by delivering an uptick in revenue growth rates typically perform very well in the long-term.

[Read: Stock Market Showdown: IBM, Microsoft Storm the Cloud.]

Even after a 31 percent gain in the past year, Microsoft shares still trade at a reasonable forward price-earnings ratio of 20.8.

In addition to the upgrade, Canaccord has set an $86 price target for Microsoft stock. If the company hits Canaccord’s growth targets, Davis says the stock could climb as high as $120 by the end of 2020.

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Microsoft Corporation (MSFT) Revenue Growth Could Double originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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