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Microsoft (MSFT) Gains As Market Dips: What You Should Know
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Microsoft (MSFT - Free Report) closed the most recent trading day at $107.06, moving +1.09% from the previous trading session. This change outpaced the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 0.38%.
Heading into today, shares of the software maker had lost 1.56% over the past month, lagging the Computer and Technology sector's gain of 0.25% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release, which is expected to be October 25, 2018. In that report, analysts expect MSFT to post earnings of $0.96 per share. This would mark year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.83 billion, up 13.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.25 per share and revenue of $122.36 billion. These totals would mark changes of +9.54% and +10.88%, respectively, from last year.
Any recent changes to analyst estimates for MSFT should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.32% higher within the past month. MSFT is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that MSFT has a Forward P/E ratio of 24.96 right now. For comparison, its industry has an average Forward P/E of 33.75, which means MSFT is trading at a discount to the group.
Investors should also note that MSFT has a PEG ratio of 2.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
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Microsoft (MSFT) Gains As Market Dips: What You Should Know
Microsoft (MSFT - Free Report) closed the most recent trading day at $107.06, moving +1.09% from the previous trading session. This change outpaced the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 0.38%.
Heading into today, shares of the software maker had lost 1.56% over the past month, lagging the Computer and Technology sector's gain of 0.25% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release, which is expected to be October 25, 2018. In that report, analysts expect MSFT to post earnings of $0.96 per share. This would mark year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.83 billion, up 13.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.25 per share and revenue of $122.36 billion. These totals would mark changes of +9.54% and +10.88%, respectively, from last year.
Any recent changes to analyst estimates for MSFT should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.32% higher within the past month. MSFT is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that MSFT has a Forward P/E ratio of 24.96 right now. For comparison, its industry has an average Forward P/E of 33.75, which means MSFT is trading at a discount to the group.
Investors should also note that MSFT has a PEG ratio of 2.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.