Microsoft (MSFT) Rises Higher Than Market: Key Facts

Microsoft (MSFT) ended the recent trading session at $383.34, demonstrating a +0.76% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.Heading into today, shares of the software maker had lost 7.53% over the past month, outpacing the Computer and Technology sector's loss of 12.07% and the S&P 500's loss of 8.15% in that time.The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. In that report, analysts expect Microsoft to post earnings of $3.20 per share. This would mark year-over-year growth of 8.84%. In the meantime, our current consensus estimate forecasts the revenue to be $68.37 billion, indicating a 10.52% growth compared to the corresponding quarter of the prior year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.08 per share and a revenue of $276.15 billion, indicating changes of +10.85% and +12.66%, respectively, from the former year.It is also important to note the recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. Microsoft is currently sporting a Zacks Rank of #3 (Hold).Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 29.09 right now. This indicates a premium in contrast to its industry's Forward P/E of 25.74.One should further note that MSFT currently holds a PEG ratio of 2.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.05 at yesterday's closing price.The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks