In the latest trading session, Strategy (MSTR) closed at $170.91, marking a -4.7% move from the previous day. This change lagged the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.25%.
The business software company's stock has climbed by 11.82% in the past month, exceeding the Finance sector's gain of 0.62% and the S&P 500's gain of 1.57%.
The investment community will be paying close attention to the earnings performance 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%. Alongside, our most recent consensus estimate is anticipating revenue of $119.6 million, indicating a 0.91% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $78.04 per share and revenue of $473.1 million, which would represent changes of +1261.31% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Strategy. 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Strategy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Strategy has a Forward P/E ratio of 3.48 right now. For comparison, its industry has an average Forward P/E of 11.77, which means Strategy is trading at a discount to the group.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Strategy Inc (MSTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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