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) Rises Yet Lags Behind Market: Some Facts Worth Knowing
Read MoreHide Full Article
In the latest market close, Microsoft (MSFT - Free Report) reached $453.96, with a +0.09% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.4%.
Heading into today, shares of the software maker had gained 2.48% over the past month, lagging the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78% in that time.
The upcoming earnings release of Microsoft will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.90, reflecting a 7.81% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $64.16 billion, reflecting a 14.19% rise from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Microsoft. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Microsoft possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 34.41 right now. This represents a premium compared to its industry's average Forward P/E of 30.81.
Also, we should mention that MSFT has a PEG ratio of 2.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Software industry stood at 2.49 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft (MSFT) Rises Yet Lags Behind Market: Some Facts Worth Knowing
In the latest market close, Microsoft (MSFT - Free Report) reached $453.96, with a +0.09% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.4%.
Heading into today, shares of the software maker had gained 2.48% over the past month, lagging the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78% in that time.
The upcoming earnings release of Microsoft will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.90, reflecting a 7.81% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $64.16 billion, reflecting a 14.19% rise from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Microsoft. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Microsoft possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 34.41 right now. This represents a premium compared to its industry's average Forward P/E of 30.81.
Also, we should mention that MSFT has a PEG ratio of 2.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Software industry stood at 2.49 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.