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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
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Microsoft (MSFT - Free Report) closed the most recent trading day at $102.05, moving -0.73% from the previous trading session. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.94%.
Heading into today, shares of the software maker had lost 6.08% over the past month, lagging the Computer and Technology sector's loss of 1.88% and the S&P 500's loss of 1.47% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release, which is expected to be January 30, 2019. The company is expected to report EPS of $1.09, up 13.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.46 billion, up 12.24% from the year-ago period.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.43 per share and revenue of $124.08 billion. These results would represent year-over-year changes of +14.18% and +12.43%, respectively.
Any recent changes to analyst estimates for MSFT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. MSFT is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MSFT currently has a Forward P/E ratio of 23.19. Its industry sports an average Forward P/E of 26.5, so we one might conclude that MSFT is trading at a discount comparatively.
Also, we should mention that MSFT has a PEG ratio of 1.86. 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. MSFT's industry had an average PEG ratio of 1.92 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 70, which puts it in the top 28% 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.
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
Microsoft (MSFT - Free Report) closed the most recent trading day at $102.05, moving -0.73% from the previous trading session. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.94%.
Heading into today, shares of the software maker had lost 6.08% over the past month, lagging the Computer and Technology sector's loss of 1.88% and the S&P 500's loss of 1.47% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release, which is expected to be January 30, 2019. The company is expected to report EPS of $1.09, up 13.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.46 billion, up 12.24% from the year-ago period.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.43 per share and revenue of $124.08 billion. These results would represent year-over-year changes of +14.18% and +12.43%, respectively.
Any recent changes to analyst estimates for MSFT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. MSFT is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MSFT currently has a Forward P/E ratio of 23.19. Its industry sports an average Forward P/E of 26.5, so we one might conclude that MSFT is trading at a discount comparatively.
Also, we should mention that MSFT has a PEG ratio of 1.86. 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. MSFT's industry had an average PEG ratio of 1.92 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 70, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.