In the latest trading session, Strategy (MSTR) closed at $176.50, marking a -3.71% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.07% for the day. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 1.69%.
The business software company's shares have seen a decrease of 12.1% over the last month, not keeping up with the Finance sector's gain of 2.46% and the S&P 500's gain of 0.94%.
Market participants will be closely following the financial results of Strategy in its upcoming release. In that report, analysts expect Strategy to post earnings of $46.02 per share. This would mark year-over-year growth of 1538.13%. Meanwhile, our latest consensus estimate is calling for revenue of $119.6 million, down 0.91% from the prior-year quarter.
MSTR's full-year Zacks Consensus Estimates are calling for earnings of $78.04 per share and revenue of $473.1 million. These results would represent year-over-year changes of +1261.31% and +2.08%, respectively.
Investors might also notice recent changes to analyst estimates for Strategy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Strategy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Strategy is presently being traded at a Forward P/E ratio of 2.35. Its industry sports an average Forward P/E of 12.42, so one might conclude that Strategy is trading at a discount comparatively.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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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Strategy Inc (MSTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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