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Microsoft (MSFT) Stock Declines While Market Improves: Some Information for Investors
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In the latest trading session, Microsoft (MSFT - Free Report) closed at $384.93, marking a -1.55% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The stock of software maker has fallen by 2.19% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2026. The company is expected to report EPS of $4.21, up 15.34% from the prior-year quarter. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $17.33 per share and a revenue of $329.26 billion, signifying shifts of +27.05% and +16.87%, respectively, from the last year.
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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Microsoft presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 20.27 right now. This denotes a premium relative to the industry average Forward P/E of 16.31.
It is also worth noting that MSFT currently has a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.24.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% 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.
View the Zacks #1 Rank List
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Microsoft (MSFT) Stock Declines While Market Improves: Some Information for Investors
In the latest trading session, Microsoft (MSFT - Free Report) closed at $384.93, marking a -1.55% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The stock of software maker has fallen by 2.19% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2026. The company is expected to report EPS of $4.21, up 15.34% from the prior-year quarter. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $17.33 per share and a revenue of $329.26 billion, signifying shifts of +27.05% and +16.87%, respectively, from the last year.
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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Microsoft presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 20.27 right now. This denotes a premium relative to the industry average Forward P/E of 16.31.
It is also worth noting that MSFT currently has a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.24.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% 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.