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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
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Microsoft (MSFT - Free Report) closed at $258.49 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500's 0.33% gain on the day.
Heading into today, shares of the software maker had gained 8.53% over the past month, outpacing the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 4.77% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release. On that day, MSFT is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 25.71%. Our most recent consensus estimate is calling for quarterly revenue of $40.94 billion, up 16.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.37 per share and revenue of $163.51 billion. These totals would mark changes of +27.95% and +14.33%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 remained stagnant. MSFT is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, MSFT currently has a Forward P/E ratio of 34.72. Its industry sports an average Forward P/E of 38.21, so we one might conclude that MSFT is trading at a discount comparatively.
Also, we should mention that MSFT has a PEG ratio of 2.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.74 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 75, which puts it in the top 30% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
Microsoft (MSFT - Free Report) closed at $258.49 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500's 0.33% gain on the day.
Heading into today, shares of the software maker had gained 8.53% over the past month, outpacing the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 4.77% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release. On that day, MSFT is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 25.71%. Our most recent consensus estimate is calling for quarterly revenue of $40.94 billion, up 16.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.37 per share and revenue of $163.51 billion. These totals would mark changes of +27.95% and +14.33%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 remained stagnant. MSFT is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, MSFT currently has a Forward P/E ratio of 34.72. Its industry sports an average Forward P/E of 38.21, so we one might conclude that MSFT is trading at a discount comparatively.
Also, we should mention that MSFT has a PEG ratio of 2.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.74 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 75, which puts it in the top 30% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.