Microsoft (MSFT) Stock Declines While Market Improves: Some Information for Investors

Microsoft (MSFT) closed at $435.25 in the latest trading session, marking a -0.31% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.98%.Prior to today's trading, shares of the software maker had gained 4.7% over the past month. This has outpaced the Computer and Technology sector's gain of 3.28% and the S&P 500's gain of 0.34% in that time.The upcoming earnings release of Microsoft will be of great interest to investors. In that report, analysts expect Microsoft to post earnings of $3.14 per share. This would mark year-over-year growth of 7.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $68.75 billion, up 10.86% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.93 per share and revenue of $277.69 billion, indicating changes of +9.58% and +13.29%, respectively, compared to the previous year.Investors should also take note of any recent adjustments to analyst estimates 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.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Microsoft currently has a Zacks Rank of #3 (Hold).Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 33.76. This valuation marks a premium compared to its industry's average Forward P/E of 31.48.It's also important to note that MSFT currently trades at a PEG ratio of 2.32. 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 Computer - Software was holding an average PEG ratio of 2.32 at yesterday's closing price.The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks