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Microsoft (MSFT) Stock Slides as Market Rises: Facts to Know Before You Trade
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Microsoft (MSFT - Free Report) closed the most recent trading day at $402.20, moving -0.11% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.51% for the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.58%.
Shares of the software maker witnessed a loss of 0.7% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.47% and the S&P 500's gain of 2.94%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.84, reflecting a 15.92% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $60.66 billion, up 14.76% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $11.63 per share and a revenue of $243.69 billion, demonstrating changes of +18.55% and +14.99%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. Microsoft is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 34.62. This valuation marks a premium compared to its industry's average Forward P/E of 30.66.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 2.34 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 21% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microsoft (MSFT) Stock Slides as Market Rises: Facts to Know Before You Trade
Microsoft (MSFT - Free Report) closed the most recent trading day at $402.20, moving -0.11% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.51% for the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.58%.
Shares of the software maker witnessed a loss of 0.7% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.47% and the S&P 500's gain of 2.94%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.84, reflecting a 15.92% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $60.66 billion, up 14.76% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $11.63 per share and a revenue of $243.69 billion, demonstrating changes of +18.55% and +14.99%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Microsoft. Such recent modifications usually signify the changing landscape of near-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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. Microsoft is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 34.62. This valuation marks a premium compared to its industry's average Forward P/E of 30.66.
We can additionally observe that MSFT currently boasts a PEG ratio of 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 2.34 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 21% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.