In the latest trading session, Microsoft (MSFT - Free Report) closed at $214.25, marking a -1.4% move from the previous day. This change lagged the S&P 500's 0.81% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 1.27%.
Heading into today, shares of the software maker had gained 0.44% over the past month, outpacing the Computer and Technology sector's loss of 1.87% and lagging the S&P 500's gain of 5.06% in that time.
MSFT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.53, up 10.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $35.69 billion, up 7.96% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.40 per share and revenue of $155.27 billion. These totals would mark changes of +11.11% and +8.57%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MSFT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. MSFT is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MSFT is holding a Forward P/E ratio of 33.97. This represents a discount compared to its industry's average Forward P/E of 34.8.
We can also see that MSFT currently has a PEG ratio of 2.48. 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 Computer - Software industry currently had an average PEG ratio of 2.5 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 69, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.