Microsoft (MSFT) wins as the market goes down: what you need to know

Microsoft (MSFT) closed at $ 300.21 in the last trading session, marking a movement of + 0.01% from the previous day. The stock topped the S&P 500’s 0.13% daily loss.

As of today, shares of the software maker had gained 4.8% over the past month. At the same time, the computer and technology sector gained 4.3%, while the S&P 500 gained 2.07%.

MSFT will seek to demonstrate its strength as the next publication of its results approaches. In this report, analysts expect MSFT to post earnings of $ 2.06 per share. This would mark 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 consensus estimates from Zacks suggest analysts expect earnings of $ 8.61 per share and revenue of $ 190.1 billion. These totals would mark changes of + 8.03% and + 13.1%, respectively, compared to last year.

Investors should also note any recent changes in analyst estimates for MSFT. These revisions help show the ever-changing nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.

The Zacks Rank 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 month, the Zacks Consensus EPS estimate has remained stagnant. MSFT currently holds a Zacks rank of # 2 (Buy).

Digging into the valuation, MSFT currently has a forward P / E ratio of 34.88. This represents a discount to its industry’s average forward P / E of 36.68.

We can also see that MSFT currently has a PEG ratio of 3.14. 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 3.09 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 165, which places it in the lowest 36% of all 250+ industries.

The Zacks Industry Rank includes is ranked from best to worst in terms of the average Zacks Rank of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

Make sure to use Zacks. Com to track all of these stock market metrics, and more, over future trading sessions.

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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.

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