Microsoft Named One of the "Best" Stocks to Buy

MSFT has had a great year on the charts

The shares of Microsoft Corporation (NASDAQ:MSFT) are moving higher in early trading, after the tech giant was added to Wedbush's "Best Ideas List," the brokerage citing a compelling risk/reward over the next 12-18 months. The analyst also said Microsoft's cloud opportunities could be a "major tailwind" for MSFT shares, and that Azure is "starting to close the gap" with Amazon's (AMZN) AWS.

MSFT is up 0.9% at $111.91 in early trading, continuing its 2019 uptrend, on pace for a third straight gain and its highest close since early December. The stock has already added 19% since bottoming out at $93.96 on Dec. 26. The equity is now staring at the $112-$113 region, which has capped rebound attempts since October.

Microsoft is no stranger to upbeat analyst attention, with 19 of 21 brokerage firms sporting "strong buy" recommendations. However, the blue chip sports an average 12-month price target of $125.45, which represents just a 12% premium to current levels.

Switching gears, those wanting to take a chance on the tech stock's near-term trajectory may want to consider a premium-buying strategy. MSFT's Schaeffer's Volatility Index (SVI) of 18% ranks in the 8th annual percentile, meaning short-term options are relatively cheap at the moment, from a historical volatility perspective.