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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Microsoft (MSFT - Free Report) closed at $225.41, marking a -1.68% move from the previous day. This change lagged the S&P 500's 0.65% loss on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.07%.
Prior to today's trading, shares of the software maker had lost 14.03% over the past month. This has lagged the Computer and Technology sector's loss of 13.29% and the S&P 500's loss of 11.07% in that time.
Microsoft will be looking to display strength as it nears its next earnings release. In that report, analysts expect Microsoft to post earnings of $2.31 per share. This would mark year-over-year growth of 1.76%. Our most recent consensus estimate is calling for quarterly revenue of $49.71 billion, up 9.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.06 per share and revenue of $219.26 billion. These totals would mark changes of +9.23% and +10.59%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microsoft. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Microsoft currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 22.79. This valuation marks a premium compared to its industry's average Forward P/E of 21.9.
It is also worth noting that MSFT currently has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Microsoft (MSFT - Free Report) closed at $225.41, marking a -1.68% move from the previous day. This change lagged the S&P 500's 0.65% loss on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.07%.
Prior to today's trading, shares of the software maker had lost 14.03% over the past month. This has lagged the Computer and Technology sector's loss of 13.29% and the S&P 500's loss of 11.07% in that time.
Microsoft will be looking to display strength as it nears its next earnings release. In that report, analysts expect Microsoft to post earnings of $2.31 per share. This would mark year-over-year growth of 1.76%. Our most recent consensus estimate is calling for quarterly revenue of $49.71 billion, up 9.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.06 per share and revenue of $219.26 billion. These totals would mark changes of +9.23% and +10.59%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microsoft. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Microsoft currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 22.79. This valuation marks a premium compared to its industry's average Forward P/E of 21.9.
It is also worth noting that MSFT currently has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.