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) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Microsoft (MSFT - Free Report) closed the most recent trading day at $287.13, moving -0.41% from the previous trading session. This change lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the software maker had gained 12.93% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
Microsoft will be looking to display strength as it nears its next earnings release. In that report, analysts expect Microsoft to post earnings of $2.27 per share. This would mark year-over-year growth of 2.25%. Meanwhile, our latest consensus estimate is calling for revenue of $51 billion, up 3.32% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $9.34 per share and revenue of $208.75 billion. These results would represent year-over-year changes of +1.41% and +5.28%, respectively.
Investors should also note any recent changes to analyst estimates for Microsoft. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Microsoft is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 30.87. Its industry sports an average Forward P/E of 28.52, so we one might conclude that Microsoft is trading at a premium comparatively.
It is also worth noting that MSFT currently has a PEG ratio of 2.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.18 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 67, which puts it in the top 27% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft (MSFT) Stock Sinks As Market Gains: What You Should Know
Microsoft (MSFT - Free Report) closed the most recent trading day at $287.13, moving -0.41% from the previous trading session. This change lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the software maker had gained 12.93% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
Microsoft will be looking to display strength as it nears its next earnings release. In that report, analysts expect Microsoft to post earnings of $2.27 per share. This would mark year-over-year growth of 2.25%. Meanwhile, our latest consensus estimate is calling for revenue of $51 billion, up 3.32% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $9.34 per share and revenue of $208.75 billion. These results would represent year-over-year changes of +1.41% and +5.28%, respectively.
Investors should also note any recent changes to analyst estimates for Microsoft. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Microsoft is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 30.87. Its industry sports an average Forward P/E of 28.52, so we one might conclude that Microsoft is trading at a premium comparatively.
It is also worth noting that MSFT currently has a PEG ratio of 2.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.18 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 67, which puts it in the top 27% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.