Microsoft (MSFT) ended the most recent trading day at $413.64, moving -1.96% from the previous trading session. This change lagged the S&P 500’s 1.2% decline on the day. On the other hand, the Dow Jones Industrial Average fell 0.65%, and the Nasdaq index, which has a large proportion of tech stocks, fell 1.79%.
Shares of the software maker have gained 1.32% over the past month, leading the Computer Technology sector’s loss of 0.51% and the S&P 500’s loss of 0.85%.
Analysts and investors alike will be keeping an eye on Microsoft’s performance in its upcoming earnings release. The company’s earnings report is expected to be published on April 25, 2024. His EPS for the company is expected to be $2.81, representing a year-over-year increase of 14.69%. At the same time, our most recent consensus estimate is projecting revenue of $60.63 billion, up 14.71% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $243.54 billion, which would represent changes of +18.35% and +14.92%, respectively, from the year-ago period.
Investors should also note any recent changes to analyst estimates for Microsoft. These latest adjustments often reflect changes in short-term business patterns. As such, positive estimate revisions indicate analyst confidence in the company’s business performance and earnings potential.
Empirical research shows that these estimate revisions are directly correlated with impending stock movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that considers these estimate changes and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 ranked stocks having an average of +25% since 1988. It generates an average annual return of %. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. Microsoft currently carries a Zacks Rank #3 (Hold).
In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 36.34. This is a premium compared to its industry’s average Forward P/E of 29.97.
Meanwhile, MSFT’s PEG ratio is currently 2.25. Compared to the widely accepted P/E ratio, the PEG ratio also explains a company’s expected earnings growth. Based on yesterday’s closing price, Computer-Software stocks are holding an average He PEG ratio of 2.25.
The computer-software industry is part of the computer and technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, on Zacks.com.
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