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Microsoft (MSFT) Stock Moves -0.04%: What You Should Know
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Microsoft (MSFT - Free Report) ended the recent trading session at $415.10, demonstrating a -0.04% swing from the preceding day's closing price. This move was narrower than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.54%.
Heading into today, shares of the software maker had gained 2.21% over the past month, lagging the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.18% in that time.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company is forecasted to report an EPS of $2.84, showcasing a 15.92% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $60.66 billion, showing a 14.76% escalation compared to the year-ago quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $11.63 per share and revenue of $243.69 billion. These results would represent year-over-year changes of +18.55% and +14.99%, respectively.
Investors should also note any recent changes to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Microsoft currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Microsoft is presently being traded at a Forward P/E ratio of 35.71. This represents a premium compared to its industry's average Forward P/E of 32.02.
It's also important to note that MSFT currently trades at a PEG ratio of 2.21. 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. The average PEG ratio for the Computer - Software industry stood at 2.43 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Microsoft (MSFT) Stock Moves -0.04%: What You Should Know
Microsoft (MSFT - Free Report) ended the recent trading session at $415.10, demonstrating a -0.04% swing from the preceding day's closing price. This move was narrower than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.54%.
Heading into today, shares of the software maker had gained 2.21% over the past month, lagging the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.18% in that time.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company is forecasted to report an EPS of $2.84, showcasing a 15.92% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $60.66 billion, showing a 14.76% escalation compared to the year-ago quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $11.63 per share and revenue of $243.69 billion. These results would represent year-over-year changes of +18.55% and +14.99%, respectively.
Investors should also note any recent changes to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Microsoft currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Microsoft is presently being traded at a Forward P/E ratio of 35.71. This represents a premium compared to its industry's average Forward P/E of 32.02.
It's also important to note that MSFT currently trades at a PEG ratio of 2.21. 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. The average PEG ratio for the Computer - Software industry stood at 2.43 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.