Here's Why Microsoft (MSFT) Fell More Than Broader Market

In the latest trading session, Microsoft (MSFT) closed at $418.07, marking a -1.12% move from the previous day. This move lagged the S&P 500's daily loss of 0.24%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 0.26%. Prior to today's trading, shares of the software maker had gained 10.72% outpaced the Computer and Technology sector's gain of 9.41% and the S&P 500's gain of 6.42%.The investment community will be paying close attention to the earnings performance of Microsoft in its upcoming release. The company is slated to reveal its earnings on April 29, 2026. On that day, Microsoft is projected to report earnings of $4.07 per share, which would represent year-over-year growth of 17.63%. In the meantime, our current consensus estimate forecasts the revenue to be $81.4 billion, indicating a 16.17% growth compared to the corresponding quarter of the prior year. MSFT's full-year Zacks Consensus Estimates are calling for earnings of $17.1 per share and revenue of $327.54 billion. These results would represent year-over-year changes of +25.37% and +16.26%, respectively. Investors might also notice recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. 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. The Zacks Consensus EPS estimate has moved 0.85% higher within the past month. Currently, Microsoft is carrying a Zacks Rank of #2 (Buy). Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 24.72 right now. For comparison, its industry has an average Forward P/E of 16.43, which means Microsoft is trading at a premium to the group. One should further note that MSFT currently holds a PEG ratio of 1.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices. The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 23% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks