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Microsoft (MSFT) Surpasses Market Returns: Some Facts Worth Knowing
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The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $463.87, reflecting a +0.19% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.32%.
Shares of the software maker witnessed a gain of 6.84% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.95% and outperforming the S&P 500's gain of 5.2%.
The upcoming earnings release of Microsoft will be of great interest to investors. The company is expected to report EPS of $3.35, up 13.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $73.71 billion, up 13.88% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.33 per share and revenue of $278.8 billion. These totals would mark changes of +12.97% and +13.74%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Microsoft. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Right now, Microsoft possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 34.72. This valuation marks a premium compared to its industry's average Forward P/E of 26.02.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 2.37 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 22% of all industries, numbering over 250.
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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
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Microsoft (MSFT) Surpasses Market Returns: Some Facts Worth Knowing
The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $463.87, reflecting a +0.19% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.32%.
Shares of the software maker witnessed a gain of 6.84% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.95% and outperforming the S&P 500's gain of 5.2%.
The upcoming earnings release of Microsoft will be of great interest to investors. The company is expected to report EPS of $3.35, up 13.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $73.71 billion, up 13.88% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.33 per share and revenue of $278.8 billion. These totals would mark changes of +12.97% and +13.74%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Microsoft. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Right now, Microsoft possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Microsoft is presently trading at a Forward P/E ratio of 34.72. This valuation marks a premium compared to its industry's average Forward P/E of 26.02.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 2.37 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 22% of all industries, numbering over 250.
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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.