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Microsoft (MSFT) Registers a Bigger Fall Than the Market: Important Facts to Note
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Microsoft (MSFT - Free Report) closed at $410.60 in the latest trading session, marking a -0.78% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.6% for the day. Meanwhile, the Dow experienced a drop of 0.39%, and the technology-dominated Nasdaq saw a decrease of 1.12%.
Shares of the software maker have depreciated by 2.15% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 3.15%.
The upcoming earnings release of Microsoft will be of great interest to investors. On that day, Microsoft is projected to report earnings of $3.09 per share, which would represent year-over-year growth of 3.34%. Simultaneously, our latest consensus estimate expects the revenue to be $64.45 billion, showing a 14.04% escalation compared to the year-ago quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $13.04 per share and revenue of $277.39 billion. These results would represent year-over-year changes of +10.51% and +13.16%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.04% lower within the past month. As of now, Microsoft holds a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 31.74. This indicates a premium in contrast to its industry's Forward P/E of 31.27.
We can also see that MSFT currently has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.38 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microsoft (MSFT) Registers a Bigger Fall Than the Market: Important Facts to Note
Microsoft (MSFT - Free Report) closed at $410.60 in the latest trading session, marking a -0.78% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.6% for the day. Meanwhile, the Dow experienced a drop of 0.39%, and the technology-dominated Nasdaq saw a decrease of 1.12%.
Shares of the software maker have depreciated by 2.15% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 3.15%.
The upcoming earnings release of Microsoft will be of great interest to investors. On that day, Microsoft is projected to report earnings of $3.09 per share, which would represent year-over-year growth of 3.34%. Simultaneously, our latest consensus estimate expects the revenue to be $64.45 billion, showing a 14.04% escalation compared to the year-ago quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $13.04 per share and revenue of $277.39 billion. These results would represent year-over-year changes of +10.51% and +13.16%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microsoft. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.04% lower within the past month. As of now, Microsoft holds a Zacks Rank of #3 (Hold).
Digging into valuation, Microsoft currently has a Forward P/E ratio of 31.74. This indicates a premium in contrast to its industry's Forward P/E of 31.27.
We can also see that MSFT currently has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.38 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.