During the last trading session, Microsoft (MSFT – Free Report) closed at $ 293.11, marking a movement of + 1.51% from the previous day. The stock topped the S&P 500 daily gain by 0.41%.
As of today, shares of the software maker had lost 3.8% over the past month. At the same time, the IT and tech sector lost 7.83%, while the S&P 500 lost 4.08%.
Wall Street will research MSFT’s positivity as the date of its next earnings report approaches. On that day, MSFT is expected to report earnings of $ 2.06 per share, which would represent year-over-year growth of 13.19%. Meanwhile, Zacks’ consensus estimate for revenue projects net sales of $ 43.87 billion, up 18.09% from the previous year.
For the full year, our Zacks consensus estimates project earnings of $ 8.64 per share and revenue of $ 190.12 billion, which would represent changes of + 8.41% and +13. , 11%, respectively, over the previous year.
Investors may also notice recent changes in analyst estimates for MSFT. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
The Zacks ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of +25. % since 1988. Over the past 30 days, our consensus EPS forecast has increased 0.02%. MSFT currently has a Zacks rank of # 2 (Buy).
Digging into the valuation, MSFT currently has a forward P / E ratio of 33.4. This represents an unnoticeable deviation from its industry’s average forward P / E of 33.4.
It should also be noted that MSFT currently has a PEG ratio of 3.01. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. MSFT’s industry had an average PEG ratio of 2.86 at yesterday’s close.
The Information Technology – Software industry is part of the Information Technology and Technology sector. This industry currently has a Zacks Industry Rank of 118, which places it in the top 47% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.