Microsoft (MSFT - Free Report) closed the most recent trading day at $107.60, moving -1.8% from the previous trading session. This move lagged the S&P 500's daily loss of 0.59%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.88%.
Prior to today's trading, shares of the software maker had lost 2.96% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.44% and the S&P 500's loss of 4.1% in that time.
Investors will be hoping for strength from MSFT as it approaches its next earnings release, which is expected to be October 25, 2018. In that report, analysts expect MSFT to post earnings of $0.96 per share. This would mark year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.86 billion, up 13.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.25 per share and revenue of $122.41 billion, which would represent changes of +9.54% and +10.92%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MSFT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MSFT currently has a Zacks Rank of #2 (Buy).
Digging into valuation, MSFT currently has a Forward P/E ratio of 25.78. This valuation marks a discount compared to its industry's average Forward P/E of 31.59.
We can also see that MSFT currently has a PEG ratio of 2.09. 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 2.09 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.