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Microsoft (MSFT) Gains As Market Dips: What You Should Know
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Microsoft (MSFT - Free Report) closed at $253.59 in the latest trading session, marking a +0.4% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.18%.
Heading into today, shares of the software maker had gained 2.57% over the past month, outpacing the Computer and Technology sector's gain of 2.1% and the S&P 500's gain of 0.04% 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 $1.90, up 30.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $44.07 billion, up 15.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.80 per share and revenue of $166.01 billion, which would represent changes of +35.42% and +16.08%, respectively, from the prior year.
Investors might also notice 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MSFT is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 32.4. This represents a discount compared to its industry's average Forward P/E of 35.96.
It is also worth noting that MSFT currently has a PEG ratio of 2.5. 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. MSFT's industry had an average PEG ratio of 2.42 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 182, which puts it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Microsoft (MSFT) Gains As Market Dips: What You Should Know
Microsoft (MSFT - Free Report) closed at $253.59 in the latest trading session, marking a +0.4% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.18%.
Heading into today, shares of the software maker had gained 2.57% over the past month, outpacing the Computer and Technology sector's gain of 2.1% and the S&P 500's gain of 0.04% 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 $1.90, up 30.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $44.07 billion, up 15.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.80 per share and revenue of $166.01 billion, which would represent changes of +35.42% and +16.08%, respectively, from the prior year.
Investors might also notice 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MSFT is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 32.4. This represents a discount compared to its industry's average Forward P/E of 35.96.
It is also worth noting that MSFT currently has a PEG ratio of 2.5. 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. MSFT's industry had an average PEG ratio of 2.42 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 182, which puts it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.