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Microsoft (MSFT) Stock Dips While Market Gains: Key Facts
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Microsoft (MSFT - Free Report) closed the most recent trading day at $371.30, moving -0.78% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.
Shares of the software maker have appreciated by 1.23% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.75, indicating a 18.53% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $61.02 billion, up 15.68% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.13 per share and revenue of $242.26 billion, indicating changes of +13.46% and +14.32%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 33.63. Its industry sports an average Forward P/E of 30.62, so one might conclude that Microsoft is trading at a premium comparatively.
It is also worth noting that MSFT currently has a PEG ratio of 2.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry had an average PEG ratio of 2.39 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Microsoft (MSFT) Stock Dips While Market Gains: Key Facts
Microsoft (MSFT - Free Report) closed the most recent trading day at $371.30, moving -0.78% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.
Shares of the software maker have appreciated by 1.23% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.75, indicating a 18.53% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $61.02 billion, up 15.68% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.13 per share and revenue of $242.26 billion, indicating changes of +13.46% and +14.32%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 33.63. Its industry sports an average Forward P/E of 30.62, so one might conclude that Microsoft is trading at a premium comparatively.
It is also worth noting that MSFT currently has a PEG ratio of 2.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry had an average PEG ratio of 2.39 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.