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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Microsoft (MSFT - Free Report) closed at $338.05, marking a -1.25% move from the previous day. This move lagged the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 5.08%.
Heading into today, shares of the software maker had gained 6.59% over the past month, lagging the Computer and Technology sector's gain of 8.33% and outpacing the S&P 500's gain of 5.36% 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 $2.56, up 14.8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.35 billion, up 6.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.65 per share and revenue of $211.08 billion. These totals would mark changes of +4.78% and +6.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.05% lower. Microsoft currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 35.47. This represents a premium compared to its industry's average Forward P/E of 27.61.
It is also worth noting that MSFT currently has a PEG ratio of 3.04. 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. The Computer - Software industry currently had an average PEG ratio of 2.4 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 97, which puts it in the top 39% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Microsoft (MSFT - Free Report) closed at $338.05, marking a -1.25% move from the previous day. This move lagged the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 5.08%.
Heading into today, shares of the software maker had gained 6.59% over the past month, lagging the Computer and Technology sector's gain of 8.33% and outpacing the S&P 500's gain of 5.36% 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 $2.56, up 14.8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.35 billion, up 6.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.65 per share and revenue of $211.08 billion. These totals would mark changes of +4.78% and +6.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.05% lower. Microsoft currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 35.47. This represents a premium compared to its industry's average Forward P/E of 27.61.
It is also worth noting that MSFT currently has a PEG ratio of 3.04. 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. The Computer - Software industry currently had an average PEG ratio of 2.4 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 97, which puts it in the top 39% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.