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Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
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Microsoft (MSFT - Free Report) closed the most recent trading day at $279.93, moving +0.82% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.34%.
Coming into today, shares of the software maker had gained 9.93% in the past month. In that same time, the Computer and Technology sector gained 5.91%, while the S&P 500 gained 2.71%.
Investors will be hoping for strength from MSFT as it approaches its next earnings release. The company is expected to report EPS of $1.90, up 30.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $44.07 billion, up 15.87% from the year-ago period.
It is also important to note the recent changes to analyst estimates for MSFT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. MSFT currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 33.43. Its industry sports an average Forward P/E of 43.27, so we one might conclude that MSFT is trading at a discount comparatively.
Investors should also note that MSFT has a PEG ratio of 2.58 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.
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
Microsoft (MSFT - Free Report) closed the most recent trading day at $279.93, moving +0.82% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.34%.
Coming into today, shares of the software maker had gained 9.93% in the past month. In that same time, the Computer and Technology sector gained 5.91%, while the S&P 500 gained 2.71%.
Investors will be hoping for strength from MSFT as it approaches its next earnings release. The company is expected to report EPS of $1.90, up 30.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $44.07 billion, up 15.87% from the year-ago period.
It is also important to note the recent changes to analyst estimates for MSFT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. MSFT currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MSFT is currently trading at a Forward P/E ratio of 33.43. Its industry sports an average Forward P/E of 43.27, so we one might conclude that MSFT is trading at a discount comparatively.
Investors should also note that MSFT has a PEG ratio of 2.58 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.