Microsoft(US:MSFT) ZACKS·2024-12-30 23:50Company Performance - Microsoft's upcoming earnings disclosure is projected to show earnings per share (EPS) of $3.14, a 7.17% increase from the same quarter last year, with revenue expected to reach $68.75 billion, reflecting a 10.86% increase year-over-year [1] - For the full year, earnings are projected at $12.93 per share and revenue at $277.69 billion, indicating changes of +9.58% and +13.29% respectively from the prior year [3] - Recent analyst estimate revisions for Microsoft suggest positive near-term business trends, which are interpreted as a good sign for the company's business outlook [9] Stock Performance - Microsoft's stock closed at $424.83, down 1.32% from the previous trading day, underperforming the S&P 500's loss of 1.07% [2] - Over the last month, Microsoft's shares increased by 1.67%, lagging behind the Computer and Technology sector's gain of 4.8% [8] Valuation Metrics - Microsoft has a Forward P/E ratio of 33.3, which is a premium compared to the industry's average Forward P/E of 32.44 [5] - The company's PEG ratio is currently 2.28, slightly above the industry average PEG ratio of 2.3 [11] Industry Context - The Computer - Software industry is part of the broader Computer and Technology sector, holding a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [12]