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Microsoft (MSFT) Gains As Market Dips: What You Should Know
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Microsoft (MSFT - Free Report) closed the most recent trading day at $424.57, moving +0.92% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq increased by 0.11%.
Coming into today, shares of the software maker had gained 1.26% in the past month. In that same time, the Computer and Technology sector gained 2.99%, while the S&P 500 gained 3.32%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company is expected to report EPS of $2.84, up 15.92% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $60.63 billion, showing a 14.71% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.63 per share and revenue of $243.6 billion, which would represent changes of +18.55% and +14.95%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 36.17. Its industry sports an average Forward P/E of 30.66, so one might conclude that Microsoft is trading at a premium comparatively.
It's also important to note that MSFT currently trades at a PEG ratio of 2.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Software industry stood at 2.4 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Microsoft (MSFT) Gains As Market Dips: What You Should Know
Microsoft (MSFT - Free Report) closed the most recent trading day at $424.57, moving +0.92% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq increased by 0.11%.
Coming into today, shares of the software maker had gained 1.26% in the past month. In that same time, the Computer and Technology sector gained 2.99%, while the S&P 500 gained 3.32%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company is expected to report EPS of $2.84, up 15.92% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $60.63 billion, showing a 14.71% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.63 per share and revenue of $243.6 billion, which would represent changes of +18.55% and +14.95%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 36.17. Its industry sports an average Forward P/E of 30.66, so one might conclude that Microsoft is trading at a premium comparatively.
It's also important to note that MSFT currently trades at a PEG ratio of 2.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Software industry stood at 2.4 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.