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Here's Why Microsoft (MSFT) Fell More Than Broader Market
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Microsoft (MSFT - Free Report) closed at $381.85 in the latest trading session, marking a -1.84% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.51%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.01%.
Shares of the software maker have depreciated by 2.37% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.84%, and outperforming the S&P 500's loss of 3.63%.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.04, marking a 16.76% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.4 billion, up 16.17% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.1 per share and revenue of $327.34 billion, which would represent changes of +25.37% and +16.19%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Microsoft presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 22.75 right now. This denotes a premium relative to the industry average Forward P/E of 17.38.
Meanwhile, MSFT's PEG ratio is currently 1.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MSFT's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Microsoft (MSFT) Fell More Than Broader Market
Microsoft (MSFT - Free Report) closed at $381.85 in the latest trading session, marking a -1.84% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.51%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.01%.
Shares of the software maker have depreciated by 2.37% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.84%, and outperforming the S&P 500's loss of 3.63%.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.04, marking a 16.76% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.4 billion, up 16.17% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.1 per share and revenue of $327.34 billion, which would represent changes of +25.37% and +16.19%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Microsoft presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 22.75 right now. This denotes a premium relative to the industry average Forward P/E of 17.38.
Meanwhile, MSFT's PEG ratio is currently 1.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MSFT's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.