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.
Why Microsoft (MSFT) Outpaced the Stock Market Today
Read MoreHide Full Article
Microsoft (MSFT - Free Report) closed at $329.82 in the latest trading session, marking a +0.78% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
Shares of the software maker have depreciated by 2.1% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company is forecasted to report an EPS of $2.65, showcasing a 12.77% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $54.42 billion, reflecting an 8.57% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.90 per share and a revenue of $233.8 billion, signifying shifts of +11.11% and +12.62%, respectively, from the last year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Microsoft is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Microsoft is presently being traded at a Forward P/E ratio of 30.02. This valuation marks a premium compared to its industry's average Forward P/E of 27.44.
One should further note that MSFT currently holds a PEG ratio of 2.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MSFT's industry had an average PEG ratio of 2.26 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Microsoft (MSFT) Outpaced the Stock Market Today
Microsoft (MSFT - Free Report) closed at $329.82 in the latest trading session, marking a +0.78% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
Shares of the software maker have depreciated by 2.1% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company is forecasted to report an EPS of $2.65, showcasing a 12.77% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $54.42 billion, reflecting an 8.57% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.90 per share and a revenue of $233.8 billion, signifying shifts of +11.11% and +12.62%, respectively, from the last year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Microsoft is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Microsoft is presently being traded at a Forward P/E ratio of 30.02. This valuation marks a premium compared to its industry's average Forward P/E of 27.44.
One should further note that MSFT currently holds a PEG ratio of 2.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MSFT's industry had an average PEG ratio of 2.26 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.