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Why Microsoft (MSFT) Dipped More Than Broader Market Today
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The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $370.87, reflecting a -1.37% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 1.64%.
The the stock of software maker has risen by 1.87% in the past month, lagging the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4%.
The upcoming earnings release of Microsoft will be of great interest to investors. The company is predicted to post an EPS of $2.75, indicating a 18.53% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.02 billion, up 15.69% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.13 per share and a revenue of $242.31 billion, indicating changes of +13.46% and +14.34%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Microsoft. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. As of now, Microsoft holds a Zacks Rank of #2 (Buy).
In the context of valuation, Microsoft is at present trading with a Forward P/E ratio of 33.79. This valuation marks a premium compared to its industry's average Forward P/E of 32.56.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Software stocks are, on average, holding a PEG ratio of 2.52 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 37% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Microsoft (MSFT) Dipped More Than Broader Market Today
The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $370.87, reflecting a -1.37% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 1.64%.
The the stock of software maker has risen by 1.87% in the past month, lagging the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4%.
The upcoming earnings release of Microsoft will be of great interest to investors. The company is predicted to post an EPS of $2.75, indicating a 18.53% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.02 billion, up 15.69% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.13 per share and a revenue of $242.31 billion, indicating changes of +13.46% and +14.34%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Microsoft. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. As of now, Microsoft holds a Zacks Rank of #2 (Buy).
In the context of valuation, Microsoft is at present trading with a Forward P/E ratio of 33.79. This valuation marks a premium compared to its industry's average Forward P/E of 32.56.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Software stocks are, on average, holding a PEG ratio of 2.52 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 37% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.