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Microsoft (MSFT) Gains But Lags Market: What You Should Know
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Microsoft (MSFT - Free Report) closed at $328.79 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.54%.
Coming into today, shares of the software maker had lost 2.36% in the past month. In that same time, the Computer and Technology sector lost 2.51%, while the S&P 500 lost 1.68%.
Microsoft will be looking to display strength as it nears its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $54.41 billion, up 8.56% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Microsoft. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. Microsoft is currently a Zacks Rank #3 (Hold).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 30.13. Its industry sports an average Forward P/E of 29.01, so we one might conclude that Microsoft is trading at a premium comparatively.
Also, we should mention that MSFT has a PEG ratio of 2.42. 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 2.46 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 93, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Microsoft (MSFT) Gains But Lags Market: What You Should Know
Microsoft (MSFT - Free Report) closed at $328.79 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.54%.
Coming into today, shares of the software maker had lost 2.36% in the past month. In that same time, the Computer and Technology sector lost 2.51%, while the S&P 500 lost 1.68%.
Microsoft will be looking to display strength as it nears its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $54.41 billion, up 8.56% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Microsoft. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. Microsoft is currently a Zacks Rank #3 (Hold).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 30.13. Its industry sports an average Forward P/E of 29.01, so we one might conclude that Microsoft is trading at a premium comparatively.
Also, we should mention that MSFT has a PEG ratio of 2.42. 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 2.46 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 93, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.