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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
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Microsoft (MSFT - Free Report) closed at $201.91 in the latest trading session, marking a +0.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.43%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq gained 0.75%.
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 $1.40 per share. This would mark year-over-year growth of 2.19%. Our most recent consensus estimate is calling for quarterly revenue of $36.59 billion, up 8.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.71 per share and revenue of $141.55 billion. These totals would mark changes of +20.21% and +12.48%, respectively, from last year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.36% higher. MSFT is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 35.15. This represents a premium compared to its industry's average Forward P/E of 32.48.
Meanwhile, MSFT's PEG ratio is currently 2.52. 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. MSFT's industry had an average PEG ratio of 2.85 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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.
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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
Microsoft (MSFT - Free Report) closed at $201.91 in the latest trading session, marking a +0.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.43%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq gained 0.75%.
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 $1.40 per share. This would mark year-over-year growth of 2.19%. Our most recent consensus estimate is calling for quarterly revenue of $36.59 billion, up 8.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.71 per share and revenue of $141.55 billion. These totals would mark changes of +20.21% and +12.48%, respectively, from last year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.36% higher. MSFT is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 35.15. This represents a premium compared to its industry's average Forward P/E of 32.48.
Meanwhile, MSFT's PEG ratio is currently 2.52. 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. MSFT's industry had an average PEG ratio of 2.85 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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.