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MICROSOFT (MSFT) SUFFERS A LARGER DROP THAN THE GENERAL MARKET: KEY INSIGHTS

Zacks Equity Research December 30, 2024

MSFT Quick QuoteMSFT

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The most recent trading session ended with Microsoft (MSFT Quick QuoteMSFT -
Free Report) standing at $424.83, reflecting a -1.32% shift from the previouse
trading day's closing. This change lagged the S&P 500's 1.07% loss on the day.
On the other hand, the Dow registered a loss of 0.97%, and the
technology-centric Nasdaq decreased by 1.19%.

The software maker's shares have seen an increase of 1.67% over the last month,
not keeping up with the Computer and Technology sector's gain of 4.8% and
outstripping the S&P 500's loss of 0.36%.

Investors will be eagerly watching for the performance of Microsoft in its
upcoming earnings disclosure. The company's earnings per share (EPS) are
projected to be $3.14, reflecting a 7.17% increase from the same quarter last
year. Simultaneously, our latest consensus estimate expects the revenue to be
$68.75 billion, showing a 10.86% escalation compared to the year-ago quarter.



For the full year, the Zacks Consensus Estimates are projecting earnings of
$12.93 per share and revenue of $277.69 billion, which would represent changes
of +9.58% and +13.29%, respectively, from the prior year.




Investors might also notice recent changes to analyst estimates for Microsoft.
Recent revisions tend to reflect the latest near-term business trends. As a
result, we can interpret positive estimate revisions as a good sign for the
company's business outlook.

Based on our research, we believe these estimate revisions are directly related
to near-team 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has
a noteworthy track record of outperforming, validated by third-party audits,
with stocks rated #1 producing an average annual return of +25% since the year
1988. Within the past 30 days, our consensus EPS projection remained stagnant.
As of now, Microsoft holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Microsoft is holding a Forward P/E ratio of 33.3. This
valuation marks a premium compared to its industry's average Forward P/E of
32.44.

Meanwhile, MSFT's PEG ratio is currently 2.28. This popular metric is similar to
the widely-known P/E ratio, with the difference being that the PEG ratio also
takes into account the company's expected earnings growth rate. The Computer -
Software industry currently had an average PEG ratio of 2.3 as of yesterday's
close.

The Computer - Software industry is part of the Computer and Technology sector.
This group has a Zacks Industry Rank of 56, putting it in the top 23% of all
250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring
the average Zacks Rank of the individual stocks within the groups. Our research
shows that the top 50% rated industries outperform the bottom half by a factor
of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on
Zacks.com.




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MORE FROM ZACKS TALE OF THE TAPE

DUPONT DE NEMOURS (DD) LOSES -9.28% IN 4 WEEKS, HERE'S...

AFTER PLUNGING -8.92% IN 4 WEEKS, HERE'S WHY THE TREND...

AFTER PLUNGING -37.9% IN 4 WEEKS, HERE'S WHY THE TREND...

DOWN -25.34% IN 4 WEEKS, HERE'S WHY FIRST FOUNDATION...

DUPONT DE NEMOURS (DD) LOSES -9.28% IN 4 WEEKS, HERE'S...

AFTER PLUNGING -8.92% IN 4 WEEKS, HERE'S WHY THE TREND...

AFTER PLUNGING -37.9% IN 4 WEEKS, HERE'S WHY THE TREND...

DOWN -25.34% IN 4 WEEKS, HERE'S WHY FIRST FOUNDATION...

DUPONT DE NEMOURS (DD) LOSES -9.28% IN 4 WEEKS, HERE'S...

AFTER PLUNGING -8.92% IN 4 WEEKS, HERE'S WHY THE TREND...

AFTER PLUNGING -37.9% IN 4 WEEKS, HERE'S WHY THE TREND...

DOWN -25.34% IN 4 WEEKS, HERE'S WHY FIRST FOUNDATION...


›
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BEST MOMENTUM STOCKS TO BUY FOR DECEMBER...

NEW STRONG BUY STOCKS FOR DECEMBER...

BEAR OF THE DAY: LAMB WESTON (LW)

BULL OF THE DAY: AMERICAN AIRLINES (AAL)

BEST MOMENTUM STOCKS TO BUY FOR DECEMBER...

NEW STRONG BUY STOCKS FOR DECEMBER...

BEAR OF THE DAY: LAMB WESTON (LW)

BULL OF THE DAY: AMERICAN AIRLINES (AAL)


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PUBLISHED IN

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trending-stocks trending-tickers


ZACKS' 7 BEST
STRONG BUY STOCKS FOR JANUARY, 2025

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Past performance is no guarantee of future results.





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›
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