Microsoft (MSFT) Stock Dips While Market Gains: Key Facts

Microsoft (MSFT) closed the most recent trading day at $459.54, moving -1.44% from the previous trading session. Read More...

In the latest market close, Microsoft (MSFT) reached $459.54, with a -1.44% movement compared to the previous day. The stock’s performance was behind the S&P 500’s daily gain of 0.07%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.14%.

The the stock of software maker has risen by 8.97% in the past month, leading the Computer and Technology sector’s gain of 8.61% and the S&P 500’s gain of 4.34%.

The upcoming earnings release of Microsoft will be of great interest to investors. The company is expected to report EPS of $2.90, up 7.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $64.16 billion, up 14.19% from the year-ago period.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Microsoft boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Microsoft is at present trading with a Forward P/E ratio of 35.37. This signifies a premium in comparison to the average Forward P/E of 30.58 for its industry.

Also, we should mention that MSFT has a PEG ratio of 2.2. 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 average PEG ratio for the Computer – Software industry stood at 2.56 at the close of the market yesterday.

The Computer – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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