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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 2.23% at $521.08. The stock's change was less than the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw a decrease of 2.6%.
Shares of the software maker witnessed a gain of 6.46% over the previous month, beating the performance of the Computer and Technology sector with its loss of 3.87%, and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company plans to announce its earnings on October 28, 2026. The company's earnings per share (EPS) are projected to be $4.71, reflecting a 14.04% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $90.59 billion, up 16.63% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $19.65 per share and a revenue of $390.35 billion, demonstrating changes of +9.47% and +17.63%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% upward. Microsoft is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 27.12. For comparison, its industry has an average Forward P/E of 16.6, which means Microsoft is trading at a premium to the group.
It's also important to note that MSFT currently trades at a PEG ratio of 1.71. 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. The Computer - Software was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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 2.23% at $521.08. The stock's change was less than the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw a decrease of 2.6%.
Shares of the software maker witnessed a gain of 6.46% over the previous month, beating the performance of the Computer and Technology sector with its loss of 3.87%, and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company plans to announce its earnings on October 28, 2026. The company's earnings per share (EPS) are projected to be $4.71, reflecting a 14.04% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $90.59 billion, up 16.63% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $19.65 per share and a revenue of $390.35 billion, demonstrating changes of +9.47% and +17.63%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% upward. Microsoft is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 27.12. For comparison, its industry has an average Forward P/E of 16.6, which means Microsoft is trading at a premium to the group.
It's also important to note that MSFT currently trades at a PEG ratio of 1.71. 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. The Computer - Software was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.