Microsoft (MSFT) closed the latest trading day at $357.86, indicating a -0.55% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.23%. Elsewhere, the Dow saw a downswing of 0.91%, while the tech-heavy Nasdaq appreciated by 0.1%.
Heading into today, shares of the software maker had lost 8.51% over the past month, outpacing the Computer and Technology sector's loss of 16.18% and the S&P 500's loss of 12.13% in that time.
Market participants will be closely following the financial results of Microsoft in its upcoming release. It is anticipated that the company will report an EPS of $3.20, marking an 8.84% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $68.36 billion, indicating a 10.51% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.07 per share and a revenue of $276.07 billion, indicating changes of +10.76% and +12.62%, respectively, from the former year.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. As of now, Microsoft holds a Zacks Rank of #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 27.54. This valuation marks a premium compared to its industry's average Forward P/E of 22.6.
One should further note that MSFT currently holds a PEG ratio of 1.91. 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 Computer - Software industry currently had an average PEG ratio of 1.95 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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