Yahoo Finance Microsoft (MSFT) Exceeds Market Returns: Some Facts to Consider
Microsoft (MSFT) closed at $430.12 in the latest trading session, marking a +0.49% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.38%.
Heading into today, shares of the software maker had gained 2.61% over the past month, outpacing the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.08, indicating a 3.01% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $64.42 billion, up 13.98% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.04 per share and a revenue of $277.36 billion, signifying shifts of +10.51% and +13.15%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Microsoft. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Currently, Microsoft is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Microsoft is currently being traded at a Forward P/E ratio of 32.83. For comparison, its industry has an average Forward P/E of 29.13, which means Microsoft is trading at a premium to the group.
It's also important to note that MSFT currently trades at a PEG ratio of 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 2.42 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
