We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Microsoft (MSFT) Fell More Than Broader Market
Read MoreHide Full Article
In the latest trading session, Microsoft (MSFT - Free Report) closed at $509.68, marking a -1.26% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
Shares of the software maker have appreciated by 0.51% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.26%, and the S&P 500's gain of 0.96%.
The upcoming earnings release of Microsoft will be of great interest to investors. It is anticipated that the company will report an EPS of $4.69, marking a 13.56% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $90.6 billion, indicating a 16.65% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.62 per share and a revenue of $389.42 billion, representing changes of +9.3% and +17.35%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 witnessed a 0.03% increase. Microsoft is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 26.31. Its industry sports an average Forward P/E of 16.23, so one might conclude that Microsoft is trading at a premium comparatively.
Also, we should mention that MSFT has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.51.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Microsoft (MSFT) Fell More Than Broader Market
In the latest trading session, Microsoft (MSFT - Free Report) closed at $509.68, marking a -1.26% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
Shares of the software maker have appreciated by 0.51% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.26%, and the S&P 500's gain of 0.96%.
The upcoming earnings release of Microsoft will be of great interest to investors. It is anticipated that the company will report an EPS of $4.69, marking a 13.56% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $90.6 billion, indicating a 16.65% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.62 per share and a revenue of $389.42 billion, representing changes of +9.3% and +17.35%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 witnessed a 0.03% increase. Microsoft is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 26.31. Its industry sports an average Forward P/E of 16.23, so one might conclude that Microsoft is trading at a premium comparatively.
Also, we should mention that MSFT has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.51.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.