Microsoft (MSFT - Free Report) closed the most recent trading day at $110.85, moving -1.09% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.67%.
Coming into today, shares of the software maker had gained 3.12% in the past month. In that same time, the Computer and Technology sector lost 1.53%, while the S&P 500 gained 0.02%.
MSFT will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. On that day, MSFT is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $27.86 billion, up 13.52% from the year-ago period.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.25 per share and revenue of $122.41 billion. These results would represent year-over-year changes of +9.54% and +10.92%, respectively.
Investors should also note any recent changes to analyst estimates for MSFT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MSFT currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, MSFT is holding a Forward P/E ratio of 26.4. This valuation marks a discount compared to its industry's average Forward P/E of 33.91.
Meanwhile, MSFT's PEG ratio is currently 2.14. 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. The Computer - Software was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.