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Microsoft (MSFT) Surpasses Market Returns: Some Facts Worth Knowing
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Microsoft (MSFT - Free Report) closed at $332.64 in the latest trading session, marking a +1.5% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 1.2%.
The software maker's shares have seen a decrease of 0.75% over the last month, surpassing the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 24, 2023. The company is predicted to post an EPS of $2.65, indicating a 12.77% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $54.42 billion, up 8.57% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.90 per share and a revenue of $233.8 billion, signifying shifts of +11.11% and +10.33%, respectively, from the last year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 30.07. This expresses a premium compared to the average Forward P/E of 27.72 of its industry.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.23.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Microsoft (MSFT) Surpasses Market Returns: Some Facts Worth Knowing
Microsoft (MSFT - Free Report) closed at $332.64 in the latest trading session, marking a +1.5% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 1.2%.
The software maker's shares have seen a decrease of 0.75% over the last month, surpassing the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 24, 2023. The company is predicted to post an EPS of $2.65, indicating a 12.77% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $54.42 billion, up 8.57% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.90 per share and a revenue of $233.8 billion, signifying shifts of +11.11% and +10.33%, respectively, from the last year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 30.07. This expresses a premium compared to the average Forward P/E of 27.72 of its industry.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.23.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.