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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Microsoft (MSFT - Free Report) closed at $135.68, marking a +1.28% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 1.06%.
Heading into today, shares of the software maker had gained 6.55% over the past month, outpacing the Computer and Technology sector's gain of 4.12% and the S&P 500's gain of 5.12% in that time.
Wall Street will be looking for positivity from MSFT as it approaches its next earnings report date. The company is expected to report EPS of $1.21, up 7.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.73 billion, up 8.8% from the year-ago period.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $124.85 billion. These results would represent year-over-year changes of +18.04% and +13.13%, respectively.
It is also important to note the recent changes to analyst estimates for MSFT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. MSFT is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MSFT is holding a Forward P/E ratio of 29.22. This represents a discount compared to its industry's average Forward P/E of 29.91.
We can also see that MSFT currently has a PEG ratio of 2.68. 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 industry currently had an average PEG ratio of 2.16 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Microsoft (MSFT - Free Report) closed at $135.68, marking a +1.28% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 1.06%.
Heading into today, shares of the software maker had gained 6.55% over the past month, outpacing the Computer and Technology sector's gain of 4.12% and the S&P 500's gain of 5.12% in that time.
Wall Street will be looking for positivity from MSFT as it approaches its next earnings report date. The company is expected to report EPS of $1.21, up 7.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.73 billion, up 8.8% from the year-ago period.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $124.85 billion. These results would represent year-over-year changes of +18.04% and +13.13%, respectively.
It is also important to note the recent changes to analyst estimates for MSFT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. MSFT is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MSFT is holding a Forward P/E ratio of 29.22. This represents a discount compared to its industry's average Forward P/E of 29.91.
We can also see that MSFT currently has a PEG ratio of 2.68. 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 industry currently had an average PEG ratio of 2.16 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.