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

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MicroStrategy (MSTR - Free Report) closed the most recent trading day at $315.63, moving -0.53% from the previous trading session. This move lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.

Coming into today, shares of the business software company had lost 16.83% in the past month. In that same time, the Computer and Technology sector lost 3.18%, while the S&P 500 lost 2.86%.

MicroStrategy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.74, up 177.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $126.2 million, up 0.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.05 per share and revenue of $502.4 million. These totals would mark changes of +124.92% and +0.63%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MicroStrategy. These revisions help to show the ever-changing nature of near-term business trends. 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.

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. MicroStrategy is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, MicroStrategy is currently trading at a Forward P/E ratio of 10.22. For comparison, its industry has an average Forward P/E of 26.81, which means MicroStrategy is trading at a discount to the group.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% 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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