In the latest close session, MicroStrategy (MSTR) was down 1.93% at $442.31. This change lagged the S&P 500's daily loss of 0.4%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq increased by 0.18%.
Coming into today, shares of the business software company had gained 17.99% in the past month. In that same time, the Computer and Technology sector gained 6.34%, while the S&P 500 gained 4.97%.
The investment community will be paying close attention to the earnings performance of MicroStrategy in its upcoming release. It is anticipated that the company will report an EPS of -$0.12, marking a 84.21% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $112.15 million, up 0.64% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$15.73 per share and revenue of $466.5 million. These totals would mark changes of -134.08% and +0.66%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MicroStrategy. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MicroStrategy is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MicroStrategy is holding a Forward P/E ratio of 61.78. This denotes a premium relative to the industry average Forward P/E of 25.74.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 30, placing it within the top 13% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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MicroStrategy Incorporated (MSTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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