We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microsoft (MSFT) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Microsoft (MSFT - Free Report) closed at $300.21 in the latest trading session, marking a +0.01% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.13%.
Coming into today, shares of the software maker had gained 4.8% in the past month. In that same time, the Computer and Technology sector gained 4.3%, while the S&P 500 gained 2.07%.
MSFT will be looking to display strength as it nears its next earnings release. In that report, analysts expect MSFT to post earnings of $2.06 per share. This would mark year-over-year growth of 13.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.87 billion, up 18.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $190.1 billion. These totals would mark changes of +8.03% and +13.1%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate 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 34.88. This represents a discount compared to its industry's average Forward P/E of 36.68.
We can also see that MSFT currently has a PEG ratio of 3.14. 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 3.09 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 165, which puts it in the bottom 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft (MSFT) Gains As Market Dips: What You Should Know
Microsoft (MSFT - Free Report) closed at $300.21 in the latest trading session, marking a +0.01% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.13%.
Coming into today, shares of the software maker had gained 4.8% in the past month. In that same time, the Computer and Technology sector gained 4.3%, while the S&P 500 gained 2.07%.
MSFT will be looking to display strength as it nears its next earnings release. In that report, analysts expect MSFT to post earnings of $2.06 per share. This would mark year-over-year growth of 13.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.87 billion, up 18.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $190.1 billion. These totals would mark changes of +8.03% and +13.1%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate 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 34.88. This represents a discount compared to its industry's average Forward P/E of 36.68.
We can also see that MSFT currently has a PEG ratio of 3.14. 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 3.09 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 165, which puts it in the bottom 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.