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Microsoft (MSFT) Rises Higher Than Market: Key Facts
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Microsoft (MSFT - Free Report) closed the most recent trading day at $373.50, moving +1.12% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
Shares of the software maker have depreciated by 8.84% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.85%, and the S&P 500's loss of 4.28%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.04, reflecting a 16.76% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $81.4 billion, showing a 16.17% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $17.1 per share and a revenue of $327.34 billion, demonstrating changes of +25.37% and +16.19%, respectively, from the preceding year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% higher. As of now, Microsoft holds a Zacks Rank of #3 (Hold).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 21.6. Its industry sports an average Forward P/E of 15.56, so one might conclude that Microsoft is trading at a premium comparatively.
Meanwhile, MSFT's PEG ratio is currently 1.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MSFT's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 49, this industry ranks in the top 21% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Microsoft (MSFT) Rises Higher Than Market: Key Facts
Microsoft (MSFT - Free Report) closed the most recent trading day at $373.50, moving +1.12% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
Shares of the software maker have depreciated by 8.84% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.85%, and the S&P 500's loss of 4.28%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.04, reflecting a 16.76% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $81.4 billion, showing a 16.17% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $17.1 per share and a revenue of $327.34 billion, demonstrating changes of +25.37% and +16.19%, respectively, from the preceding year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% higher. As of now, Microsoft holds a Zacks Rank of #3 (Hold).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 21.6. Its industry sports an average Forward P/E of 15.56, so one might conclude that Microsoft is trading at a premium comparatively.
Meanwhile, MSFT's PEG ratio is currently 1.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MSFT's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 49, this industry ranks in the top 21% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.