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Microsoft (MSFT) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, Microsoft (MSFT - Free Report) was down 3.8% at $378.86. This move lagged the S&P 500's daily loss of 1.22%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.35%.
Coming into today, shares of the software maker had lost 5.65% in the past month. In that same time, the Computer and Technology sector gained 1.19%, while the S&P 500 gained 1.56%.
The investment community will be closely monitoring the performance of Microsoft in its forthcoming earnings report. It is anticipated that the company will report an EPS of $4.21, marking a 15.34% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $87.44 billion, reflecting a 14.39% rise from the equivalent quarter last year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $17.33 per share and revenue of $329.26 billion. These results would represent year-over-year changes of +27.05% and +16.87%, respectively.
Investors might also notice recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 witnessed a 0% decrease. Microsoft is currently a Zacks Rank #3 (Hold).
With respect to valuation, Microsoft is currently being traded at a Forward P/E ratio of 22.73. Its industry sports an average Forward P/E of 14.81, so one might conclude that Microsoft is trading at a premium comparatively.
We can also see that MSFT currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.37 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Microsoft (MSFT) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Microsoft (MSFT - Free Report) was down 3.8% at $378.86. This move lagged the S&P 500's daily loss of 1.22%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.35%.
Coming into today, shares of the software maker had lost 5.65% in the past month. In that same time, the Computer and Technology sector gained 1.19%, while the S&P 500 gained 1.56%.
The investment community will be closely monitoring the performance of Microsoft in its forthcoming earnings report. It is anticipated that the company will report an EPS of $4.21, marking a 15.34% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $87.44 billion, reflecting a 14.39% rise from the equivalent quarter last year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $17.33 per share and revenue of $329.26 billion. These results would represent year-over-year changes of +27.05% and +16.87%, respectively.
Investors might also notice recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 witnessed a 0% decrease. Microsoft is currently a Zacks Rank #3 (Hold).
With respect to valuation, Microsoft is currently being traded at a Forward P/E ratio of 22.73. Its industry sports an average Forward P/E of 14.81, so one might conclude that Microsoft is trading at a premium comparatively.
We can also see that MSFT currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.37 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.