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Microsoft (MSFT) Gains But Lags Market: What You Should Know
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Microsoft (MSFT - Free Report) closed the most recent trading day at $345.73, moving +0.14% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.39%.
Coming into today, shares of the software maker had gained 0.85% in the past month. In that same time, the Computer and Technology sector gained 2.41%, while the S&P 500 gained 3.16%.
Wall Street will be looking for positivity from Microsoft as it approaches its next earnings report date. This is expected to be July 25, 2023. In that report, analysts expect Microsoft to post earnings of $2.55 per share. This would mark year-over-year growth of 14.35%. Our most recent consensus estimate is calling for quarterly revenue of $55.35 billion, up 6.73% from the year-ago period.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 32.03. Its industry sports an average Forward P/E of 28.28, so we one might conclude that Microsoft is trading at a premium comparatively.
We can also see that MSFT currently has a PEG ratio of 2.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MSFT's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Gains But Lags Market: What You Should Know
Microsoft (MSFT - Free Report) closed the most recent trading day at $345.73, moving +0.14% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.39%.
Coming into today, shares of the software maker had gained 0.85% in the past month. In that same time, the Computer and Technology sector gained 2.41%, while the S&P 500 gained 3.16%.
Wall Street will be looking for positivity from Microsoft as it approaches its next earnings report date. This is expected to be July 25, 2023. In that report, analysts expect Microsoft to post earnings of $2.55 per share. This would mark year-over-year growth of 14.35%. Our most recent consensus estimate is calling for quarterly revenue of $55.35 billion, up 6.73% from the year-ago period.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 32.03. Its industry sports an average Forward P/E of 28.28, so we one might conclude that Microsoft is trading at a premium comparatively.
We can also see that MSFT currently has a PEG ratio of 2.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MSFT's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.