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Microsoft (MSFT) Stock Falls Amid Market Uptick: What Investors Need to Know
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The latest trading session saw Microsoft (MSFT - Free Report) ending at $417.19, denoting a -0.42% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the software maker had lost 6.33% over the past month, lagging the Computer and Technology sector's loss of 1.29% and the S&P 500's loss of 2.2% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to go public on January 29, 2025. The company's upcoming EPS is projected at $3.13, signifying a 6.83% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $68.75 billion, up 10.86% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.92 per share and revenue of $277.69 billion. These totals would mark changes of +9.49% and +13.29%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microsoft. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 32.42. This denotes a premium relative to the industry's average Forward P/E of 30.41.
Also, we should mention that MSFT has a PEG ratio of 2.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.35.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 42% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Microsoft (MSFT) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Microsoft (MSFT - Free Report) ending at $417.19, denoting a -0.42% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the software maker had lost 6.33% over the past month, lagging the Computer and Technology sector's loss of 1.29% and the S&P 500's loss of 2.2% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to go public on January 29, 2025. The company's upcoming EPS is projected at $3.13, signifying a 6.83% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $68.75 billion, up 10.86% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.92 per share and revenue of $277.69 billion. These totals would mark changes of +9.49% and +13.29%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microsoft. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 32.42. This denotes a premium relative to the industry's average Forward P/E of 30.41.
Also, we should mention that MSFT has a PEG ratio of 2.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.35.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 42% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.