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MicroStrategy (MSTR) Gains As Market Dips: What You Should Know

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MicroStrategy (MSTR - Free Report) closed at $580.38 in the latest trading session, marking a +1.53% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Heading into today, shares of the business software company had lost 28.1% over the past month, lagging the Computer and Technology sector's loss of 2.28% and the S&P 500's loss of 0.13% in that time.

Investors will be hoping for strength from MicroStrategy as it approaches its next earnings release. In that report, analysts expect MicroStrategy to post earnings of $1.67 per share. This would mark a year-over-year decline of 19.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $132.45 million, up 0.86% from the year-ago period.

MSTR's full-year Zacks Consensus Estimates are calling for earnings of $6.79 per share and revenue of $508.75 million. These results would represent year-over-year changes of +31.33% and +5.83%, respectively.

Investors should also note any recent changes to analyst estimates for MicroStrategy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. MicroStrategy is currently a Zacks Rank #3 (Hold).

In terms of valuation, MicroStrategy is currently trading at a Forward P/E ratio of 84.25. This represents a premium compared to its industry's average Forward P/E of 36.88.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% 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.

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