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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
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Microsoft (MSFT - Free Report) closed at $294.30 in the latest trading session, marking a -1.86% move from the prior day. This change lagged the S&P 500's 1.7% loss on the day.
Heading into today, shares of the software maker had lost 1.48% over the past month, lagging the Computer and Technology sector's gain of 2.54% and the S&P 500's loss of 0.27% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release. The company is expected to report EPS of $2.06, up 13.19% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $43.87 billion, up 18.09% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for MSFT. Recent revisions tend to reflect the latest 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MSFT is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 34.84. This represents a discount compared to its industry's average Forward P/E of 35.13.
Meanwhile, MSFT's PEG ratio is currently 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.99 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 121, which puts it in the top 48% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
Microsoft (MSFT - Free Report) closed at $294.30 in the latest trading session, marking a -1.86% move from the prior day. This change lagged the S&P 500's 1.7% loss on the day.
Heading into today, shares of the software maker had lost 1.48% over the past month, lagging the Computer and Technology sector's gain of 2.54% and the S&P 500's loss of 0.27% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release. The company is expected to report EPS of $2.06, up 13.19% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $43.87 billion, up 18.09% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for MSFT. Recent revisions tend to reflect the latest 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MSFT is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 34.84. This represents a discount compared to its industry's average Forward P/E of 35.13.
Meanwhile, MSFT's PEG ratio is currently 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.99 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 121, which puts it in the top 48% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.