Microsoft (MSFT) Stock Sees Slight Dip, But Analysts Optimistic Ahead of Earnings Report
In the latest market close, Microsoft (MSFT) saw a slight dip, reaching $459.54 with a -1.44% movement compared to the previous day. Despite this, the stock’s performance was still ahead of the S&P 500’s daily gain of 0.07%. The Dow experienced a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.14%.
Over the past month, Microsoft’s stock has risen by 8.97%, leading the Computer and Technology sector’s gain of 8.61% and the S&P 500’s gain of 4.34%. Investors are eagerly awaiting the upcoming earnings release from Microsoft, with the company expected to report an EPS of $2.90, up 7.81% from the prior-year quarter. The consensus estimate is calling for quarterly revenue of $64.16 billion, up 14.19% from the year-ago period.
Analysts are optimistic about Microsoft’s future, with positive estimate revisions reflecting confidence in the company’s business and profitability. The Zacks Rank, a proprietary model that takes these estimate changes into account, currently rates Microsoft as a #3 (Hold). The Zacks Rank system has a track record of superior performance, with #1 stocks contributing an average annual return of +25% since 1988.
In terms of valuation, Microsoft is trading with a Forward P/E ratio of 35.37, indicating a premium compared to the industry average. The stock also has a PEG ratio of 2.2, slightly below the industry average of 2.56. The Computer – Software industry, to which Microsoft belongs, currently has a Zacks Industry Rank of 155, placing it in the bottom 39% of all industries.
Investors are encouraged to keep track of these stock-moving metrics using Zacks.com in the upcoming trading sessions. For the latest recommendations from Zacks Investment Research, investors can download the 7 Best Stocks for the Next 30 Days report.
