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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
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Microsoft (MSFT - Free Report) closed at $276.44 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's 0.74% loss on the day.
Heading into today, shares of the software maker had lost 5.07% over the past month, outpacing the Computer and Technology sector's loss of 7.96% and lagging the S&P 500's loss of 4.6% in that time.
Wall Street will be looking for positivity from Microsoft as it approaches its next earnings report date. In that report, analysts expect Microsoft to post earnings of $2.18 per share. This would mark year-over-year growth of 11.79%. Our most recent consensus estimate is calling for quarterly revenue of $49 billion, up 17.48% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.32 per share and revenue of $198.21 billion, which would represent changes of +16.94% and +17.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 30.06. For comparison, its industry has an average Forward P/E of 27.96, which means Microsoft is trading at a premium to the group.
We can also see that MSFT currently has a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.44 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
Microsoft (MSFT - Free Report) closed at $276.44 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's 0.74% loss on the day.
Heading into today, shares of the software maker had lost 5.07% over the past month, outpacing the Computer and Technology sector's loss of 7.96% and lagging the S&P 500's loss of 4.6% in that time.
Wall Street will be looking for positivity from Microsoft as it approaches its next earnings report date. In that report, analysts expect Microsoft to post earnings of $2.18 per share. This would mark year-over-year growth of 11.79%. Our most recent consensus estimate is calling for quarterly revenue of $49 billion, up 17.48% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.32 per share and revenue of $198.21 billion, which would represent changes of +16.94% and +17.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 30.06. For comparison, its industry has an average Forward P/E of 27.96, which means Microsoft is trading at a premium to the group.
We can also see that MSFT currently has a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.44 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.