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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
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Microsoft (MSFT - Free Report) closed at $321.80 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the software maker had lost 3.93% over the past month, outpacing the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Wall Street will be looking for positivity from Microsoft as it approaches its next earnings report date. The company is expected to report EPS of $2.65, up 12.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $54.42 billion, up 8.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.90 per share and revenue of $233.8 billion, which would represent changes of +11.11% and +10.33%, respectively, from the prior year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 28.97. This valuation marks a premium compared to its industry's average Forward P/E of 28.03.
Also, we should mention that MSFT has a PEG ratio of 2.33. 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 was holding an average PEG ratio of 2.33 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.
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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
Microsoft (MSFT - Free Report) closed at $321.80 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the software maker had lost 3.93% over the past month, outpacing the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Wall Street will be looking for positivity from Microsoft as it approaches its next earnings report date. The company is expected to report EPS of $2.65, up 12.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $54.42 billion, up 8.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.90 per share and revenue of $233.8 billion, which would represent changes of +11.11% and +10.33%, respectively, from the prior year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 28.97. This valuation marks a premium compared to its industry's average Forward P/E of 28.03.
Also, we should mention that MSFT has a PEG ratio of 2.33. 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 was holding an average PEG ratio of 2.33 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.