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Microsoft (MSFT) Gains As Market Dips: What You Should Know
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Microsoft (MSFT - Free Report) closed at $314.27 in the latest trading session, marking a +0.07% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the software maker had lost 8.32% over the past month. This has lagged the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Microsoft as it approaches its next earnings release. The company is expected to report EPS of $2.29, up 12.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $50.32 billion, up 16.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.13 per share and revenue of $194.98 billion, which would represent changes of +14.55% and +16%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Microsoft. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Microsoft is currently a Zacks Rank #2 (Buy).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 34.39. This represents a discount compared to its industry's average Forward P/E of 39.08.
We can also see that MSFT currently has a PEG ratio of 2.86. 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 2.84 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microsoft (MSFT) Gains As Market Dips: What You Should Know
Microsoft (MSFT - Free Report) closed at $314.27 in the latest trading session, marking a +0.07% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the software maker had lost 8.32% over the past month. This has lagged the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Microsoft as it approaches its next earnings release. The company is expected to report EPS of $2.29, up 12.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $50.32 billion, up 16.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.13 per share and revenue of $194.98 billion, which would represent changes of +14.55% and +16%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Microsoft. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Microsoft is currently a Zacks Rank #2 (Buy).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 34.39. This represents a discount compared to its industry's average Forward P/E of 39.08.
We can also see that MSFT currently has a PEG ratio of 2.86. 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 2.84 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.