Microsoft is a Sell, Buy These Top Ranked Tech Stocks Instead

Without a doubt, Microsoft (NASDAQ:MSFT) has had a splendid 2014, seeing shares rise 26.69% over the year. The script has changed in 2015 for the company though, as the stock has seen share prices fall by 12.33% since the start of the new year.

It also doesn't help that MSFT analysts are becoming more bearish on the stock, as evidenced by recent earnings estimate revisions. Our EPS consensus called for earnings of $0.68 per share 60 days ago for the current quarter, but since then, our consensus has been lowered to $0.53, which explains part of why MSFT stock is suffering. In fact, we currently have MSFT as a Zacks Rank #4 (Sell) and are looking for more underperformance from the company in the near term.

Obviously, the earnings outlook for Microsoft looks disappointing. However, there are plenty of tech stocks experiencing the opposite of what Microsoft is going through. By this, we mean that there are tech stocks which have seen their earnings estimates going up in the recent past, building positive momentum.

Below, we outline 3 tech stocks with a good chance of delivering in coming weeks, and which are seeing rising earnings estimates. The criteria on which we will analyze these companies is strictly based on earnings criteria, but we think this can show us a few hidden gems in tech world that may be better selections than MSFT right now.

DST Systems Inc (NYSE:DST)

DST Systems is a software development company that offers an array of business solutions for insurance, telecommunications, and utility companies. The company was a Zacks Rank #3 (Hold) last week, but has since become a Zacks Rank #1 (Strong Buy). In the last 2 months, the EPS consensus has been revised upwards, unlike Microsoft.

60 days ago, our EPS consensus called for earnings of $1.22 per share for the quarter. Since then, our consensus has been driven up, with a current EPS consensus estimate of $1.29 per share.

The company has beaten our consensus in each of the last four quarters when it reported earnings, and by an average of 9.46%. The fact that our earnings ESP is positive at 1.55% along with the Zacks Rank #1 indicates that DST is a likely candidate to beat when it reports earnings on 4/23/15.

Interactive Intelligence Group Inc (NASDAQ:ININ)

Interactive Intelligence is a software company that provides call center technologies as well as software solutions for organizations. The company is currently a Zacks Rank #1 (Strong Buy). Just a week ago, it was a Zacks Rank #2 (Buy), so the upgraded status is encouraging. In the last 30 days, earnings estimates have been revised upwards.

30 days ago, our consensus called for a loss of $0.30 per share. However, analysts have made a few revisions to their estimates since then and our consensus currently calls for a loss of only $0.27 per share.

The company has surprised in each of the last 3 quarters,beating our consensus by an average of 94.03% in that time span. The fact that ININ has a positive ESP of 11.11% as well as a Zacks Rank #1 is really encouraging, as it makes the company a likely candidate to beat on earnings when it reports its earnings on 5/4/15.

MicroStrategy Incorporated (NASDAQ:MSTR)

MicroStrategy is a global provider of business intelligence software as well as mobile software. The company also engages in cloud-based services. MicroStrategy holds a Zacks Rank #1 (Strong Buy). There have been 2 positive earnings estimate revisions in the last 60 days by analysts. In that same time frame there have been 0 negative estimate revisions.

60 days ago, the earnings consensus called for earnings of $0.80 per share for this quarter. Since then, the consensus has climbed higher, currently estimating earnings of $1.08 per share. MSTR beat our EPS estimate by 57.64% last quarter. The Zacks Rank #1 (Strong Buy) as well as the increased estimates go well together, as they suggest that it is more likely for MSTR to impress shareholders when it reports its earnings on 4/27/15.

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