Microsoft (MSFT) Rises Higher Than Market: Key Facts

In the latest close session, Microsoft (MSFT) was up +1.03% at $483.47. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. On the other hand, the Dow registered a gain of 1.35%, and the technology-centric Nasdaq decreased by 0.26%. Heading into today, shares of the software maker had lost 6.37% over the past month, lagging the Computer and Technology sector's gain of 2.05% and the S&P 500's gain of 0.89%.The upcoming earnings release of Microsoft will be of great interest to investors. The company's upcoming EPS is projected at $3.86, signifying a 19.50% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $80.16 billion, up 15.12% from the year-ago period. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.59 per share and a revenue of $325.15 billion, indicating changes of +14.3% and +15.42%, respectively, from the former year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 0.27% rise in the Zacks Consensus EPS estimate. Currently, Microsoft is carrying a Zacks Rank of #3 (Hold). In terms of valuation, Microsoft is currently trading at a Forward P/E ratio of 30.7. Its industry sports an average Forward P/E of 24.71, so one might conclude that Microsoft is trading at a premium comparatively. Investors should also note that MSFT has a PEG ratio of 1.82 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 1.92 as of yesterday's close. The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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