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MicroStrategy (MSTR) Declines More Than Market: Some Information for Investors

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MicroStrategy (MSTR - Free Report) ended the recent trading session at $329.14, demonstrating a -1.87% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.34%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 1.62%.

The business software company's stock has dropped by 1.13% in the past month, falling short of the Computer and Technology sector's loss of 0.34% and outpacing the S&P 500's loss of 1.57%.

The investment community will be closely monitoring the performance of MicroStrategy in its forthcoming earnings report. The company is scheduled to release its earnings on November 1, 2023. On that day, MicroStrategy is projected to report earnings of $0.74 per share, which would represent year-over-year growth of 177.08%. At the same time, our most recent consensus estimate is projecting a revenue of $126.2 million, reflecting a 0.67% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $31.05 per share and a revenue of $502.4 million, representing changes of +124.92% and +0.63%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for MicroStrategy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, MicroStrategy is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, MicroStrategy is currently trading at a Forward P/E ratio of 10.8. This signifies a discount in comparison to the average Forward P/E of 28.27 for its industry.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 43% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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