Yahoo Finance Microsoft (MSFT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Microsoft (MSFT) closed at $276.38, marking a -1.49% move from the previous day. This change lagged the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the software maker had gained 12.58% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Investors will be hoping for strength from Microsoft as it approaches its next earnings release. On that day, Microsoft is projected to report earnings of $2.22 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $51 billion, up 3.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.34 per share and revenue of $208.75 billion. These totals would mark changes of +1.41% and +5.28%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microsoft. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microsoft is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 30.05. This represents a premium compared to its industry's average Forward P/E of 27.28.
Also, we should mention that MSFT has a PEG ratio of 2.58. 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. MSFT's industry had an average PEG ratio of 2.11 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
