Advertisement
U.S. markets close in 4 hours 20 minutes
  • S&P 500

    5,252.03
    +3.54 (+0.07%)
     
  • Dow 30

    39,772.59
    +12.51 (+0.03%)
     
  • Nasdaq

    16,391.67
    -7.85 (-0.05%)
     
  • Russell 2000

    2,128.70
    +14.35 (+0.68%)
     
  • Crude Oil

    82.62
    +1.27 (+1.56%)
     
  • Gold

    2,235.70
    +23.00 (+1.04%)
     
  • Silver

    24.99
    +0.23 (+0.94%)
     
  • EUR/USD

    1.0807
    -0.0022 (-0.21%)
     
  • 10-Yr Bond

    4.1910
    -0.0050 (-0.12%)
     
  • GBP/USD

    1.2638
    -0.0000 (-0.00%)
     
  • USD/JPY

    151.1520
    -0.0940 (-0.06%)
     
  • Bitcoin USD

    71,051.16
    +1,792.12 (+2.59%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,970.29
    +38.31 (+0.48%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Microsoft (MSFT) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Microsoft (MSFT) closed at $244.52, marking a -0.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.

Heading into today, shares of the software maker had lost 14.47% over the past month, outpacing the Computer and Technology sector's loss of 14.62% and lagging the S&P 500's loss of 9.94% in that time.

Investors will be hoping for strength from Microsoft as it approaches its next earnings release. In that report, analysts expect Microsoft to post earnings of $2.31 per share. This would mark year-over-year growth of 1.76%. Meanwhile, our latest consensus estimate is calling for revenue of $49.72 billion, up 9.72% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.09 per share and revenue of $219.95 billion, which would represent changes of +9.55% and +10.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Microsoft. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Microsoft is currently a Zacks Rank #3 (Hold).

Digging into valuation, Microsoft currently has a Forward P/E ratio of 24.26. This valuation marks a discount compared to its industry's average Forward P/E of 24.49.

It is also worth noting that MSFT currently has a PEG ratio of 2.07. 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. The Computer - Software was holding an average PEG ratio of 2.01 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement