Microsoft (MSFT) Stock Moves -0.2%: What You Should Know

Microsoft (MSFT) closed at $237.45 in the latest trading session, marking a -0.2% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the software maker had lost 11.25% over the past month. This has was narrower than the Computer and Technology sector's loss of 13.11% and lagged the S&P 500's loss of 10.4% in that time.

Investors will be hoping for strength from Microsoft as it approaches its next earnings release. The company is expected to report EPS of $2.31, up 1.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $49.71 billion, up 9.69% from the year-ago period.

MSFT's full-year Zacks Consensus Estimates are calling for earnings of $10.09 per share and revenue of $219.87 billion. These results would represent year-over-year changes of +9.55% and +10.89%, respectively.

Any recent changes to analyst estimates for Microsoft should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Microsoft currently has a Zacks Rank of #3 (Hold).

Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 23.59. This represents a premium compared to its industry's average Forward P/E of 23.49.

Also, we should mention that MSFT has a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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