Microsoft (MSFT) closed the latest trading day at $374.05, indicating a +1.97% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Shares of the software maker witnessed a loss of 7.17% over the previous month, beating the performance of the Computer and Technology sector with its loss of 9.93% and underperforming the S&P 500's loss of 6.57%.
The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. The company is slated to reveal its earnings on April 30, 2025. The company is expected to report EPS of $3.20, up 8.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $68.38 billion, up 10.55% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.03 per share and revenue of $275.39 billion, indicating changes of +10.42% and +12.35%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Microsoft. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. As of now, Microsoft holds a Zacks Rank of #3 (Hold).
In terms of valuation, Microsoft is presently being traded at a Forward P/E ratio of 28.14. This signifies a premium in comparison to the average Forward P/E of 23.63 for its industry.
It's also important to note that MSFT currently trades at a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.11 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
