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Microsoft (MSFT) Gains But Lags Market: What You Should Know
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Microsoft (MSFT - Free Report) ended the recent trading session at $419.14, demonstrating a +0.68% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.87%.
Prior to today's trading, shares of the software maker had lost 3.31% over the past month. This has lagged the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87% in that time.
The upcoming earnings release of Microsoft will be of great interest to investors. The company's earnings report is expected on October 30, 2024. It is anticipated that the company will report an EPS of $3.08, marking a 3.01% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $64.42 billion, indicating a 13.98% increase compared to the same quarter of the previous year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $13.02 per share and revenue of $277.36 billion. These results would represent year-over-year changes of +10.34% and +13.15%, respectively.
Investors should also note any recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 0.16% lower. Microsoft is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 31.99 right now. Its industry sports an average Forward P/E of 29.54, so one might conclude that Microsoft is trading at a premium comparatively.
Also, we should mention that MSFT has a PEG ratio of 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.56.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Microsoft (MSFT) Gains But Lags Market: What You Should Know
Microsoft (MSFT - Free Report) ended the recent trading session at $419.14, demonstrating a +0.68% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.87%.
Prior to today's trading, shares of the software maker had lost 3.31% over the past month. This has lagged the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87% in that time.
The upcoming earnings release of Microsoft will be of great interest to investors. The company's earnings report is expected on October 30, 2024. It is anticipated that the company will report an EPS of $3.08, marking a 3.01% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $64.42 billion, indicating a 13.98% increase compared to the same quarter of the previous year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $13.02 per share and revenue of $277.36 billion. These results would represent year-over-year changes of +10.34% and +13.15%, respectively.
Investors should also note any recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 0.16% lower. Microsoft is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 31.99 right now. Its industry sports an average Forward P/E of 29.54, so one might conclude that Microsoft is trading at a premium comparatively.
Also, we should mention that MSFT has a PEG ratio of 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.56.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.