Microsoft (MSFT) Surges 4.0%: Is This an Indication of Further Gains?
Microsoft (MSFT) shares ended the last trading session 4% higher at $359.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1% gain over the past four weeks.
The upswing in share price came after Microsoft's appeal against Britain's block on its $69 billion takeover of Activision Blizzard (ATVI.O) was formally paused by a London tribunal, to give the parties more time to resolve the dispute.
Microsoft, Activision and Britain's competition regulator, the Competition and Markets Authority (CMA), had all asked for a two-month stay of the case after the CMA suggested that it would consider a modified deal put forward by Microsoft.
This software maker is expected to post quarterly earnings of $2.55 per share in its upcoming report, which represents a year-over-year change of +14.4%. Revenues are expected to be $55.36 billion, up 6.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Microsoft, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MSFT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Microsoft is a member of the Zacks Computer - Software industry. One other stock in the same industry, Blackbaud (BLKB), finished the last trading session 0.2% higher at $77.79. BLKB has returned 7.2% over the past month.
For Blackbaud , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.93. This represents a change of +24% from what the company reported a year ago. Blackbaud currently has a Zacks Rank of #4 (Sell).
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
Blackbaud, Inc. (BLKB) : Free Stock Analysis Report
