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Microsoft (MSFT) Stock Sinks As Market Gains: What You Should Know

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Microsoft (MSFT - Free Report) closed the most recent trading day at $123.16, moving -0.42% from the previous trading session. This change lagged the S&P 500's 2.14% gain on the day. Meanwhile, the Dow gained 2.06%, and the Nasdaq, a tech-heavy index, added 2.65%.

Prior to today's trading, shares of the software maker had lost 6.48% over the past month. This has was narrower than the Computer and Technology sector's loss of 10.97% and the S&P 500's loss of 6.63% in that time.

Wall Street will be looking for positivity from MSFT as it approaches its next earnings report date. In that report, analysts expect MSFT to post earnings of $1.21 per share. This would mark year-over-year growth of 7.08%. Our most recent consensus estimate is calling for quarterly revenue of $32.74 billion, up 8.82% from the year-ago period.

MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $124.86 billion. These results would represent year-over-year changes of +18.04% and +13.14%, respectively.

It is also important to note the recent changes to analyst estimates for MSFT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 remained stagnant. MSFT is currently a Zacks Rank #2 (Buy).

Looking at its valuation, MSFT is holding a Forward P/E ratio of 26.14. This valuation marks a discount compared to its industry's average Forward P/E of 29.06.

We can also see that MSFT currently has a PEG ratio of 2.11. 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 industry currently had an average PEG ratio of 2.02 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 157, which puts it in the bottom 39% 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.


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