In the latest trading session, MicroStrategy (MSTR) closed at $375.18, marking a -1.85% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.91%.
Coming into today, shares of the business software company had lost 4.39% in the past month. In that same time, the Computer and Technology sector gained 0%, while the S&P 500 gained 1.44%.
Investors will be eagerly watching for the performance of MicroStrategy in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.12, signifying a 84.21% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors might also notice recent changes to analyst estimates for MicroStrategy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 remained unchanged. MicroStrategy currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, MicroStrategy is currently exchanging hands at a Forward P/E ratio of 52.36. For comparison, its industry has an average Forward P/E of 36.6, which means MicroStrategy is trading at a premium to the group.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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