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Microsoft (MSFT) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, Microsoft (MSFT - Free Report) closed at $390.29, marking a -1.78% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 2.54%.
The software maker's shares have seen a decrease of 1.94% over the last month, surpassing the Computer and Technology sector's loss of 3.11% and falling behind the S&P 500's loss of 1.63%.
The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. The company's earnings per share (EPS) are projected to be $4.21, reflecting a 15.34% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $87.44 billion, up 14.39% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $17.33 per share and a revenue of $329.26 billion, demonstrating changes of +27.05% and +16.87%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 witnessed a 0% decrease. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 22.93. Its industry sports an average Forward P/E of 16.98, so one might conclude that Microsoft is trading at a premium comparatively.
We can also see that MSFT currently has a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.38.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 38% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Microsoft (MSFT) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Microsoft (MSFT - Free Report) closed at $390.29, marking a -1.78% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 2.54%.
The software maker's shares have seen a decrease of 1.94% over the last month, surpassing the Computer and Technology sector's loss of 3.11% and falling behind the S&P 500's loss of 1.63%.
The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. The company's earnings per share (EPS) are projected to be $4.21, reflecting a 15.34% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $87.44 billion, up 14.39% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $17.33 per share and a revenue of $329.26 billion, demonstrating changes of +27.05% and +16.87%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 witnessed a 0% decrease. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 22.93. Its industry sports an average Forward P/E of 16.98, so one might conclude that Microsoft is trading at a premium comparatively.
We can also see that MSFT currently has a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.38.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 38% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.