In the latest trading session, Microsoft (MSFT) closed at $139.55, marking a -0.09% move from the previous day. This change was narrower than the S&P 500's 0.14% loss on the day. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the software maker had gained 1.57% over the past month. This has outpaced the Computer and Technology sector's loss of 0.36% and the S&P 500's loss of 0.91% in that time.
MSFT will be looking to display strength as it nears its next earnings release, which is expected to be October 23, 2019. In that report, analysts expect MSFT to post earnings of $1.25 per share. This would mark year-over-year growth of 9.65%. Meanwhile, our latest consensus estimate is calling for revenue of $32.23 billion, up 10.83% from the prior-year quarter.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $5.24 per share and revenue of $139.91 billion. These results would represent year-over-year changes of +10.32% and +11.18%, respectively.
Investors might also notice recent changes to analyst estimates for MSFT. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.27% higher. MSFT is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, MSFT currently has a Forward P/E ratio of 26.66. This valuation marks a discount compared to its industry's average Forward P/E of 27.03.
Meanwhile, MSFT's PEG ratio is currently 2.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MSFT's industry had an average PEG ratio of 2.19 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% 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.
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