Stock statistics are calculated to develop an understanding of the level of volatility and stock appreciation for companies operating in Business Software and Services industry (Thomsett, 2015; Murphy, 1991). The companies chosen for the analysis include Microsoft Corporation, Oracle Corporation, Alphabet Inc., Apple Inc., and HP Inc. Microsoft Corporation is analyzed and compared with its competitors to identify the situation in the read sense.
Ranking in terms of Risk
Identifying the value for Beta carries out the risk analysis. It shows the degree of volatility of the stock with the industry (Ehrhardt & Brigham, 2008; Vishwanath, 2007). The analysis helps to reveal/draw the following rankings from highest to lowest.
HPQ – HP Inc.,
AAPL - Apple Inc.,
ORCL - Oracle Corporation,
MSFT - Microsoft Corporation, and
GOOG - Alphabet Inc.
It means that Alphabet Inc. has the lowest level of risk since, its beta value is lower compared to other four competitors.
Ranking in terms of Stock appreciation
The ranking for stock appreciation is done by market capitalization of the company. The results show that Apple Inc. has the highest market capitalization, followed by Alphabet Inc., Microsoft Corporation, HP Inc. and Oracle Corporation.
AAPL - Apple Inc.,
GOOG - Alphabet Inc.,
MSFT - Microsoft Corporation,
HPQ – HP Inc.,
ORCL - Oracle Corporation.
References
Business Finance, Stock Market, Quotes, News. (2016). Retrieved July 01, 2016, from finance.yahoo.com: http://finance.yahoo.com/
Ehrhardt, M., & Brigham, E. (2008). Corporate Finance: A Focused Approach. Mason: Cengage Learning.
Murphy, J. J. (1991). Intermarket Technical Analysis: Trading Strategies for the Global Stock, Bond, Commodity, and Currency Markets. Hoboken: John Wiley & Sons.
Thomsett, M. C. (2015). Getting Started in Stock Analysis, Illustrated Edition. Hoboken: John Wiley & Sons.
Vishwanath, S. R. (2007). Corporate Finance: Theory and Practice. Delhi: SAGE Publications India.
