Microsoft (MSFT) closed at $334.75 in the latest trading session, marking a -0.47% move from the prior day. This change lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.
Coming into today, shares of the software maker had gained 4.12% in the past month. In that same time, the Computer and Technology sector gained 1.46%, while the S&P 500 gained 4.56%.
Microsoft will be looking to display strength as it nears its next earnings release. On that day, Microsoft is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 0.99%. Meanwhile, our latest consensus estimate is calling for revenue of $50.32 billion, up 16.82% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.13 per share and revenue of $194.98 billion. These totals would mark changes of +14.55% and +16%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microsoft. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Microsoft is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Microsoft is holding a Forward P/E ratio of 36.83. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 36.83.
Investors should also note that MSFT has a PEG ratio of 3.06 right now. 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 3.06 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.
To follow MSFT in the coming trading sessions, be sure to utilize Zacks.com.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
