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

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MicroStrategy (MSTR - Free Report) ended the recent trading session at $323.42, demonstrating a +0.94% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.12%.

Shares of the business software company have depreciated by 8.64% over the course of the past month, underperforming the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.

Market participants will be closely following the financial results of MicroStrategy in its upcoming release. The company plans to announce its earnings on November 1, 2023. In that report, analysts expect MicroStrategy to post earnings of $0.74 per share. This would mark year-over-year growth of 177.08%. Meanwhile, our latest consensus estimate is calling for revenue of $126.2 million, up 0.67% from the prior-year quarter.

MSTR's full-year Zacks Consensus Estimates are calling for earnings of $31.05 per share and revenue of $502.4 million. These results would represent year-over-year changes of +124.92% and +0.63%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MicroStrategy. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 remained stagnant. MicroStrategy is currently a Zacks Rank #3 (Hold).

Investors should also note MicroStrategy's current valuation metrics, including its Forward P/E ratio of 10.32. For comparison, its industry has an average Forward P/E of 27.59, 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 153, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MSTR in the coming trading sessions, be sure to utilize Zacks.com.


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