Microsoft (MSFT) closed the most recent trading day at $541.13, moving +1.13% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq lost 0.44%.
Shares of the software maker have appreciated by 7.96% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.85%, and the S&P 500's gain of 2.36%.
Investors will be eagerly watching for the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2026. The company is predicted to post an EPS of $4.71, indicating a 14.04% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $90.6 billion, indicating a 16.64% upward movement from the same quarter last year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $19.65 per share and revenue of $390.2 billion. These results would represent year-over-year changes of +9.47% and +17.59%, respectively.
It is also important to note the recent changes to analyst estimates for Microsoft. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% increase. 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 27.24 right now. This valuation marks a premium compared to its industry average Forward P/E of 16.72.
Investors should also note that MSFT has a PEG ratio of 1.72 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).