In the latest trading session, Microsoft (MSFT - Free Report) closed at $103.11, marking a +1.38% move from the previous day. This move outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.92%.
Prior to today's trading, shares of the software maker had lost 5.91% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.28% and lagged the S&P 500's loss of 4.37% in that time.
MSFT will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2019. On that day, MSFT is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 13.54%. Meanwhile, our latest consensus estimate is calling for revenue of $32.46 billion, up 12.25% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.43 per share and revenue of $124.08 billion. These results would represent year-over-year changes of +14.18% and +12.43%, respectively.
Investors might also notice recent changes to analyst estimates for MSFT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 4.08% higher. MSFT currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that MSFT has a Forward P/E ratio of 22.97 right now. This represents a discount compared to its industry's average Forward P/E of 29.91.
Also, we should mention that MSFT has a PEG ratio of 1.84. 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 industry currently had an average PEG ratio of 1.96 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.