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.
Microsoft (MSFT) Falls More Steeply Than Broader Market: What Investors Need to Know
Read MoreHide Full Article
Microsoft (MSFT - Free Report) closed the most recent trading day at $422.86, moving -1.37% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.31%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.27%.
The software maker's stock has climbed by 4.48% in the past month, exceeding the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. The company's upcoming EPS is projected at $2.84, signifying a 15.92% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $60.63 billion, up 14.71% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $11.63 per share and revenue of $243.6 billion. These results would represent year-over-year changes of +18.55% and +14.95%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of 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 demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 36.87. This denotes a premium relative to the industry's average Forward P/E of 31.03.
We can also see that MSFT currently has a PEG ratio of 2.28. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.43.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft (MSFT) Falls More Steeply Than Broader Market: What Investors Need to Know
Microsoft (MSFT - Free Report) closed the most recent trading day at $422.86, moving -1.37% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.31%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.27%.
The software maker's stock has climbed by 4.48% in the past month, exceeding the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. The company's upcoming EPS is projected at $2.84, signifying a 15.92% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $60.63 billion, up 14.71% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $11.63 per share and revenue of $243.6 billion. These results would represent year-over-year changes of +18.55% and +14.95%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of 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 demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 36.87. This denotes a premium relative to the industry's average Forward P/E of 31.03.
We can also see that MSFT currently has a PEG ratio of 2.28. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.43.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.