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) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Read MoreHide Full Article
Microsoft (MSFT - Free Report) ended the recent trading session at $424.59, demonstrating a -0.22% swing from the preceding day's closing price. This change lagged the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.
The the stock of software maker has risen by 4.75% in the past month, leading the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company's earnings per share (EPS) are projected to be $2.81, reflecting a 14.69% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.63 billion, up 14.71% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $243.6 billion, which would represent changes of +18.35% and +14.95%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.17% lower. Currently, Microsoft is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 36.65. This signifies a premium in comparison to the average Forward P/E of 30.82 for its industry.
It is also worth noting that MSFT currently has a PEG ratio of 2.27. 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 2.32 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft (MSFT) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Microsoft (MSFT - Free Report) ended the recent trading session at $424.59, demonstrating a -0.22% swing from the preceding day's closing price. This change lagged the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.
The the stock of software maker has risen by 4.75% in the past month, leading the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company's earnings per share (EPS) are projected to be $2.81, reflecting a 14.69% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.63 billion, up 14.71% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $243.6 billion, which would represent changes of +18.35% and +14.95%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.17% lower. Currently, Microsoft is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 36.65. This signifies a premium in comparison to the average Forward P/E of 30.82 for its industry.
It is also worth noting that MSFT currently has a PEG ratio of 2.27. 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 2.32 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.