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Microsoft (MSFT) Stock Sinks As Market Gains: What You Should Know
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Microsoft (MSFT - Free Report) ended the recent trading session at $374.09, demonstrating a -0.15% swing from the preceding day's closing price. This change lagged the S&P 500's 0.14% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the software maker had lost 2.1% over the past month. This has lagged the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 4.89% in that time.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.75, marking a 18.53% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $61.02 billion, up 15.69% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.13 per share and a revenue of $242.31 billion, signifying shifts of +13.46% and +14.34%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microsoft. These recent revisions tend to reflect the evolving nature of short-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 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Microsoft is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 33.66. This represents a premium compared to its industry's average Forward P/E of 32.81.
Investors should also note that MSFT has a PEG ratio of 2.5 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.53 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 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microsoft (MSFT) Stock Sinks As Market Gains: What You Should Know
Microsoft (MSFT - Free Report) ended the recent trading session at $374.09, demonstrating a -0.15% swing from the preceding day's closing price. This change lagged the S&P 500's 0.14% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the software maker had lost 2.1% over the past month. This has lagged the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 4.89% in that time.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.75, marking a 18.53% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $61.02 billion, up 15.69% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.13 per share and a revenue of $242.31 billion, signifying shifts of +13.46% and +14.34%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microsoft. These recent revisions tend to reflect the evolving nature of short-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 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Microsoft is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 33.66. This represents a premium compared to its industry's average Forward P/E of 32.81.
Investors should also note that MSFT has a PEG ratio of 2.5 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.53 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 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.