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Microsoft (MSFT) Registers a Bigger Fall Than the Market: Important Facts to Note
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Microsoft (MSFT - Free Report) closed the most recent trading day at $416.67, moving -2.66% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 2.65%. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 4.18%.
The software maker's shares have seen an increase of 1.73% over the last month, not keeping up with the Computer and Technology sector's gain of 10.37% and the S&P 500's gain of 5.47%.
The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. On that day, Microsoft is projected to report earnings of $4.21 per share, which would represent year-over-year growth of 15.34%. Alongside, our most recent consensus estimate is anticipating revenue of $87.44 billion, indicating a 14.39% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $17.35 per share and a revenue of $329.26 billion, demonstrating changes of +27.2% and +16.87%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Microsoft. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0% lower. Currently, Microsoft is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 24.67. This expresses a premium compared to the average Forward P/E of 17.44 of its industry.
We can additionally observe that MSFT currently boasts a PEG ratio of 1.49. 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 1.62 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 32% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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) Registers a Bigger Fall Than the Market: Important Facts to Note
Microsoft (MSFT - Free Report) closed the most recent trading day at $416.67, moving -2.66% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 2.65%. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 4.18%.
The software maker's shares have seen an increase of 1.73% over the last month, not keeping up with the Computer and Technology sector's gain of 10.37% and the S&P 500's gain of 5.47%.
The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. On that day, Microsoft is projected to report earnings of $4.21 per share, which would represent year-over-year growth of 15.34%. Alongside, our most recent consensus estimate is anticipating revenue of $87.44 billion, indicating a 14.39% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $17.35 per share and a revenue of $329.26 billion, demonstrating changes of +27.2% and +16.87%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Microsoft. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0% lower. Currently, Microsoft is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 24.67. This expresses a premium compared to the average Forward P/E of 17.44 of its industry.
We can additionally observe that MSFT currently boasts a PEG ratio of 1.49. 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 1.62 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 32% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.