We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Microsoft (MSFT - Free Report) closed at $288.80 in the latest trading session, marking a +0.93% move from the prior day. This change outpaced the S&P 500's 0.33% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.92%.
Coming into today, shares of the software maker had gained 2.4% in the past month. In that same time, the Computer and Technology sector gained 7.45%, while the S&P 500 gained 5.67%.
Investors will be hoping for strength from Microsoft as it approaches its next earnings release, which is expected to be April 25, 2023. The company is expected to report EPS of $2.22, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $50.99 billion, up 3.29% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $9.31 per share and revenue of $208.66 billion. These results would represent year-over-year changes of +1.09% and +5.24%, respectively.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.36% lower. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 30.75. This valuation marks a premium compared to its industry's average Forward P/E of 27.22.
Meanwhile, MSFT's PEG ratio is currently 2.53. 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. MSFT's industry 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 73, which puts it in the top 29% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft (MSFT) Outpaces Stock Market Gains: What You Should Know
Microsoft (MSFT - Free Report) closed at $288.80 in the latest trading session, marking a +0.93% move from the prior day. This change outpaced the S&P 500's 0.33% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.92%.
Coming into today, shares of the software maker had gained 2.4% in the past month. In that same time, the Computer and Technology sector gained 7.45%, while the S&P 500 gained 5.67%.
Investors will be hoping for strength from Microsoft as it approaches its next earnings release, which is expected to be April 25, 2023. The company is expected to report EPS of $2.22, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $50.99 billion, up 3.29% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $9.31 per share and revenue of $208.66 billion. These results would represent year-over-year changes of +1.09% and +5.24%, respectively.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.36% lower. Microsoft is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 30.75. This valuation marks a premium compared to its industry's average Forward P/E of 27.22.
Meanwhile, MSFT's PEG ratio is currently 2.53. 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. MSFT's industry 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 73, which puts it in the top 29% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.