Microsoft (MSFT) closed the most recent trading day at $418.78, moving +0.15% from the previous trading session. This change outpaced the S&P 500’s 0.18% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.
Heading into today, shares of the software maker had lost 3.93% over the past month, lagging the Computer and Technology sector’s gain of 6.6% and the S&P 500’s gain of 4.46% in that time.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company plans to announce its earnings on October 30, 2024. It is anticipated that the company will report an EPS of $3.08, marking a 3.01% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $64.41 billion, indicating a 13.97% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.02 per share and revenue of $277.22 billion, indicating changes of +10.34% and +13.09%, respectively, compared to the previous year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Right now, Microsoft possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 32.11 right now. Its industry sports an average Forward P/E of 30.07, so one might conclude that Microsoft is trading at a premium comparatively.
One should further note that MSFT currently holds a PEG ratio of 2.19. 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. As the market closed yesterday, the Computer – Software industry was having an average PEG ratio of 2.51.
The Computer – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 60, this industry ranks in the top 24% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
