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MicroStrategy (MSTR) Laps the Stock Market: Here's Why
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MicroStrategy (MSTR - Free Report) ended the recent trading session at $377.02, demonstrating a +2.68% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.
Coming into today, shares of the business software company had lost 0.63% in the past month. In that same time, the Computer and Technology sector gained 5.67%, while the S&P 500 gained 3.92%.
Analysts and investors alike will be keeping a close eye on the performance of MicroStrategy in its upcoming earnings disclosure. On that day, MicroStrategy is projected to report earnings of -$0.12 per share, which would represent year-over-year growth of 84.21%. At the same time, our most recent consensus estimate is projecting a revenue of $112.15 million, reflecting a 0.64% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$15.73 per share and revenue of $466.5 million. These totals would mark changes of -134.08% and +0.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MicroStrategy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. MicroStrategy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MicroStrategy is presently being traded at a Forward P/E ratio of 50.3. This signifies a premium in comparison to the average Forward P/E of 25.34 for its industry.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 27, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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MicroStrategy (MSTR) Laps the Stock Market: Here's Why
MicroStrategy (MSTR - Free Report) ended the recent trading session at $377.02, demonstrating a +2.68% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.
Coming into today, shares of the business software company had lost 0.63% in the past month. In that same time, the Computer and Technology sector gained 5.67%, while the S&P 500 gained 3.92%.
Analysts and investors alike will be keeping a close eye on the performance of MicroStrategy in its upcoming earnings disclosure. On that day, MicroStrategy is projected to report earnings of -$0.12 per share, which would represent year-over-year growth of 84.21%. At the same time, our most recent consensus estimate is projecting a revenue of $112.15 million, reflecting a 0.64% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$15.73 per share and revenue of $466.5 million. These totals would mark changes of -134.08% and +0.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MicroStrategy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. MicroStrategy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MicroStrategy is presently being traded at a Forward P/E ratio of 50.3. This signifies a premium in comparison to the average Forward P/E of 25.34 for its industry.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 27, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.