Microsoft (MSFT - Free Report) closed the most recent trading day at $110.51, moving +0.11% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Heading into today, shares of the software maker had gained 4.86% over the past month, outpacing the Computer and Technology sector's gain of 2.89% and the S&P 500's gain of 1.81% in that time.
MSFT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1, up 5.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.83 billion, up 11.24% from the year-ago period.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.41 per share and revenue of $123.87 billion. These results would represent year-over-year changes of +13.62% and +12.24%, respectively.
It is also important to note the recent changes to analyst estimates for MSFT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.05% lower. MSFT is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MSFT is holding a Forward P/E ratio of 25.04. This valuation marks a discount compared to its industry's average Forward P/E of 28.84.
Investors should also note that MSFT has a PEG ratio of 2.03 right now. 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. 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 28, putting it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.