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Microsoft (MSFT) Laps the Stock Market: Here's Why
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The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $442.94, reflecting a +1.33% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.08%. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 1.58%.
Shares of the software maker have depreciated by 2.82% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.77% and lagging the S&P 500's gain of 0.43%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company plans to announce its earnings on July 30, 2024. On that day, Microsoft is projected to report earnings of $2.90 per share, which would represent year-over-year growth of 7.81%. Simultaneously, our latest consensus estimate expects the revenue to be $64.16 billion, showing a 14.19% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. Microsoft is currently a Zacks Rank #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 33.2. For comparison, its industry has an average Forward P/E of 29.9, which means Microsoft is trading at a premium to the group.
We can also see that MSFT currently has a PEG ratio of 2.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.44 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 38% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Microsoft (MSFT) Laps the Stock Market: Here's Why
The most recent trading session ended with Microsoft (MSFT - Free Report) standing at $442.94, reflecting a +1.33% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.08%. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 1.58%.
Shares of the software maker have depreciated by 2.82% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.77% and lagging the S&P 500's gain of 0.43%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company plans to announce its earnings on July 30, 2024. On that day, Microsoft is projected to report earnings of $2.90 per share, which would represent year-over-year growth of 7.81%. Simultaneously, our latest consensus estimate expects the revenue to be $64.16 billion, showing a 14.19% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. Microsoft is currently a Zacks Rank #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 33.2. For comparison, its industry has an average Forward P/E of 29.9, which means Microsoft is trading at a premium to the group.
We can also see that MSFT currently has a PEG ratio of 2.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.44 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 38% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.