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MicroStrategy (MSTR) Gains As Market Dips: What You Should Know

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MicroStrategy (MSTR - Free Report) closed at $562.34 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today's trading, shares of the business software company had lost 21.18% over the past month. This has lagged the Computer and Technology sector's gain of 0.63% and the S&P 500's gain of 3.11% in that time.

MicroStrategy will be looking to display strength as it nears its next earnings release. In that report, analysts expect MicroStrategy to post earnings of $1.50 per share. This would mark a year-over-year decline of 27.54%. Our most recent consensus estimate is calling for quarterly revenue of $132.45 million, up 0.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.55 per share and revenue of $508.75 million. These totals would mark changes of +26.69% and +5.83%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for MicroStrategy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 6.02% lower. MicroStrategy is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, MicroStrategy currently has a Forward P/E ratio of 84.96. This valuation marks a premium compared to its industry's average Forward P/E of 37.44.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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