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Microsoft (MSFT) Stock Falls Amid Market Uptick: What Investors Need to Know
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Microsoft (MSFT - Free Report) closed the most recent trading day at $368.57, moving -1.18% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.18% for the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 2.07%.
Shares of the software maker witnessed a loss of 17.16% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.33%, and the S&P 500's loss of 2.9%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. 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. Simultaneously, our latest consensus estimate expects the revenue to be $87.46 billion, showing a 14.41% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.33 per share and revenue of $329.27 billion, which would represent changes of +27.05% and +16.88%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Microsoft presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 21.53. This expresses a premium compared to the average Forward P/E of 14.66 of its industry.
It's also important to note that MSFT currently trades at a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.3.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Microsoft (MSFT) Stock Falls Amid Market Uptick: What Investors Need to Know
Microsoft (MSFT - Free Report) closed the most recent trading day at $368.57, moving -1.18% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.18% for the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 2.07%.
Shares of the software maker witnessed a loss of 17.16% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.33%, and the S&P 500's loss of 2.9%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. 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. Simultaneously, our latest consensus estimate expects the revenue to be $87.46 billion, showing a 14.41% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.33 per share and revenue of $329.27 billion, which would represent changes of +27.05% and +16.88%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Microsoft presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 21.53. This expresses a premium compared to the average Forward P/E of 14.66 of its industry.
It's also important to note that MSFT currently trades at a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.3.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.