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Microsoft (MSFT) Stock Drops Despite Market Gains: Important Facts to Note
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The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $396.51, reflecting a -0.54% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.
Shares of the software maker witnessed a gain of 6.43% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.64% and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Microsoft in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2024. On that day, Microsoft is projected to report earnings of $2.76 per share, which would represent year-over-year growth of 18.97%. Alongside, our most recent consensus estimate is anticipating revenue of $61.03 billion, indicating a 15.71% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.14 per share and a revenue of $242.41 billion, representing changes of +13.56% and +14.39%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. As of now, Microsoft holds a Zacks Rank of #2 (Buy).
With respect to valuation, Microsoft is currently being traded at a Forward P/E ratio of 35.78. This indicates a premium in contrast to its industry's Forward P/E of 33.59.
It's also important to note that MSFT currently trades at a PEG ratio of 2.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.3.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
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Microsoft (MSFT) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $396.51, reflecting a -0.54% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.
Shares of the software maker witnessed a gain of 6.43% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.64% and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Microsoft in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2024. On that day, Microsoft is projected to report earnings of $2.76 per share, which would represent year-over-year growth of 18.97%. Alongside, our most recent consensus estimate is anticipating revenue of $61.03 billion, indicating a 15.71% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.14 per share and a revenue of $242.41 billion, representing changes of +13.56% and +14.39%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. As of now, Microsoft holds a Zacks Rank of #2 (Buy).
With respect to valuation, Microsoft is currently being traded at a Forward P/E ratio of 35.78. This indicates a premium in contrast to its industry's Forward P/E of 33.59.
It's also important to note that MSFT currently trades at a PEG ratio of 2.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.3.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.