Yahoo Finance Why Microsoft (MSFT) Dipped More Than Broader Market Today
In the latest market close, Microsoft (MSFT) reached $447.67, with a -0.47% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq decreased by 1.09%.
Coming into today, shares of the software maker had gained 4.56% in the past month. In that same time, the Computer and Technology sector gained 6.41%, while the S&P 500 gained 2.73%.
The upcoming earnings release of Microsoft will be of great interest to investors. In that report, analysts expect Microsoft to post earnings of $2.90 per share. This would mark year-over-year growth of 7.81%. At the same time, our most recent consensus estimate is projecting a revenue of $64.16 billion, reflecting a 14.19% rise from the equivalent quarter last year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $11.77 per share and revenue of $244.41 billion. These results would represent year-over-year changes of +19.98% and +15.33%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Microsoft. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Microsoft is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 38.22. This valuation marks a premium compared to its industry's average Forward P/E of 27.91.
Investors should also note that MSFT has a PEG ratio of 2.37 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.45.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report