MicroStrategy (MSTR) closed at $395.67 in the latest trading session, marking a -2.06% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 0.92%.
Shares of the business software company witnessed a gain of 7.88% over the previous month, matching the performance of the Computer and Technology sector with its gain of 7.88%, and outperforming the S&P 500's gain of 5.22%.
Investors will be eagerly watching for the performance of MicroStrategy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.12, marking a 84.21% rise 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$15.73 per share and a revenue of $466.5 million, indicating changes of -134.08% and +0.66%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for MicroStrategy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, MicroStrategy holds a Zacks Rank of #3 (Hold).
In terms of valuation, MicroStrategy is currently trading at a Forward P/E ratio of 55.34. This indicates a premium in contrast to its industry's Forward P/E of 27.59.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 42, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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MicroStrategy Incorporated (MSTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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