Latest news with #ComputerSoftware
Yahoo
a day ago
- Business
- Yahoo
Here is What to Know Beyond Why Microsoft Corporation (MSFT) is a Trending Stock
Microsoft (MSFT) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this software maker have returned +2.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The Zacks Computer - Software industry, to which Microsoft belongs, has gained 2.1% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, Microsoft is expected to post earnings of $3.64 per share, indicating a change of +10.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.2% over the last 30 days. The consensus earnings estimate of $15.32 for the current fiscal year indicates a year-over-year change of +12.3%. This estimate has changed +2.4% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $17.89 indicates a change of +16.7% from what Microsoft is expected to report a year ago. Over the past month, the estimate has changed +2.9%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Microsoft. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Microsoft, the consensus sales estimate of $75.38 billion for the current quarter points to a year-over-year change of +14.9%. The $320.67 billion and $366.59 billion estimates for the current and next fiscal years indicate changes of +13.8% and +14.3%, respectively. Last Reported Results and Surprise History Microsoft reported revenues of $76.44 billion in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $3.65 for the same period compares with $2.95 a year ago. Compared to the Zacks Consensus Estimate of $73.71 billion, the reported revenues represent a surprise of +3.7%. The EPS surprise was +8.96%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Microsoft is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Microsoft. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
Here is What to Know Beyond Why Microsoft Corporation (MSFT) is a Trending Stock
Microsoft (MSFT) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this software maker have returned +2.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The Zacks Computer - Software industry, to which Microsoft belongs, has gained 2.1% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, Microsoft is expected to post earnings of $3.64 per share, indicating a change of +10.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.2% over the last 30 days. The consensus earnings estimate of $15.32 for the current fiscal year indicates a year-over-year change of +12.3%. This estimate has changed +2.4% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $17.89 indicates a change of +16.7% from what Microsoft is expected to report a year ago. Over the past month, the estimate has changed +2.9%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Microsoft. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Microsoft, the consensus sales estimate of $75.38 billion for the current quarter points to a year-over-year change of +14.9%. The $320.67 billion and $366.59 billion estimates for the current and next fiscal years indicate changes of +13.8% and +14.3%, respectively. Last Reported Results and Surprise History Microsoft reported revenues of $76.44 billion in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $3.65 for the same period compares with $2.95 a year ago. Compared to the Zacks Consensus Estimate of $73.71 billion, the reported revenues represent a surprise of +3.7%. The EPS surprise was +8.96%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Microsoft is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Microsoft. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
CDNS Stock Gains 25% in a Year: Stay Invested or Book Profits?
Cadence Design Systems CDNS stock has risen 24.6% over the past year, higher than the gains registered by the Computer-Software industry (up 23.1%), the broader Computer and Technology sector (up 24.2%) and the S&P 500 composite (up 17.5%). The company has gained 4.6% since July 28, when it reported better-than-expected second-quarter performance. The stock closed last trading session at $349.12, below its 52-week high of $376.45. Does the pullback indicate a buying opportunity? Let us dive into CDNS' pros and cons and determine the best course of action for your portfolio. Cadence Has Multiple Tailwinds AI is driving a major transformation in semiconductor and system design, and Cadence is deeply integrated into this shift. Secular growth drivers such as 5G, the rise of hyperscale computing and autonomous vehicles are further fueling design activity across the semiconductor and systems landscape. The rapid adoption of Generative AI, Agentic AI and Physical AI is creating an exponential surge in computing needs and semiconductor innovation, an environment that plays to Cadence's strengths. To seize this momentum, the company has been working closely with industry leaders like Qualcomm and NVIDIA on next-generation AI designs for both training and inference workloads. The company is also exploring new AI-driven markets, such as life sciences, through its OpenEye drug discovery software. In addition, Cadence is strengthening collaborations with foundry partners, including Taiwan Semiconductor Manufacturing, Intel and Arm Holdings. Looking ahead, Cadence is poised to benefit from rising R&D spending by customers pursuing AI-driven automation. During the latest earnings call, management emphasized that unifying its capabilities across EDA, IP, 3D-IC, PCB and system analysis is positioning the company to capture opportunities from the ongoing AI supercycle. Customer R&D investments, especially in AI, remain strong. Cadence's ratable software model, strong backlog and high mix of recurring revenues offer resilience amid macroeconomic volatility. Demand for the new hardware systems, especially among AI and hyperscale clients, is the primary catalyst behind Core EDA's business (which constitutes Custom IC, Digital IC and Functional Verification businesses) performance. Core EDA revenues grew 16% year over year in the second quarter. It also unveiled Cerebrus AI Studio, which is an agentic AI multi-block and multi-user SoC design platform. It offers up to 20% PPA improvement, while speeding up chip delivery time by five to 10 times. It was endorsed by Samsung and ST Microelectronics at launch. The IP business benefited owing to a broadening silicon solutions portfolio and increasing demand for solutions in AI, HPC, foundry ecosystem buildout and chiplet use cases, with revenues from the segment up 25% year over year in the second quarter. To strengthen IP business, the company announced the acquisition of Secure-IC, which will expand its IP portfolio, including interface, memory, AI and DSP solutions. In April 2025, Cadence signed a definitive agreement with Arm Holdings to acquire its Artisan foundation IP business. The acquisition includes a suite of standard cell libraries, memory compilers and general-purpose I/Os, all finely tuned for advanced process nodes at leading global foundries. Driven by strong results and a strong pipeline, management upgraded its outlook for 2025. Revenues for 2025 are now estimated to be in the range of $5.21-$5.27 billion compared with $5.15-$5.23 billion guided earlier. Non-GAAP EPS for 2025 is expected to be between $6.85 and $6.95 compared with $6.73-$6.83 guided earlier. Strong Cash Flow and Repurchases As of June 30, 2025, Cadence had cash and cash equivalents of $2.823 billion and long-term debt was $2.478 billion. Operating cash flow was $378 million in the reported quarter, with free cash flow of $334 million. The company repurchased its shares worth $175 million in the second quarter. It expects to execute $200 million in repurchases in the third quarter. Management reaffirmed its commitment to return at least 50% of free cash flow via buybacks, enhancing shareholder returns. Headwinds Remain a Concern for CDNS Weakness prevailing over global macroeconomic conditions and substantial exposure to the semiconductor vertical are concerning. Any reduction in R&D spending for companies within the semiconductor sector could affect CDNS' top-line performance. Higher operating costs and stiff competition in the EDA/AI space from the likes of Keysight Technologies and Synopsys SNPS are additional headwinds. The acquisition of ANSYS by Synopsys is likely to intensify competition in the EDA space for all players. SNPS completed the acquisition of ANSS in July 2025, creating a combined leader in silicon design, IP, and simulation and analysis. The company generates a significant portion of its revenues from the international market. Revenues from international operations as a percentage of overall revenues have historically exceeded 50%. In 2024, the company derived 47% of revenues from the United States, while the balance came from its international operations. Hence, we expect any adverse foreign currency exchange rates to impede revenue growth. Cadence stock is trading at a premium, with a forward 12-month Price/Earnings ratio of 46.83X compared with the industry's 35.12X. Conclusion: Hold CDNS Stock for Now Cadence, with its strong fundamentals, robust AI-driven demand and a resilient recurring revenue model, remains a compelling opportunity. The company's prominent position in the EDA space and strategic partnerships with tech giants like NVIDIA and Qualcomm position it well for long-term growth. However, macro uncertainty, intense competition and stretched valuation remain valid concerns. At present, CDNS carries a Zacks Rank #3 (Hold). For investors already holding shares, the story remains compelling, but for new entrants, it may be wise to wait for a better entry point. Stocks to Consider Better-ranked stocks worth consideration in the same industry space are Intuit Inc. INTU and Microsoft Corporation MSFT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for INTU's fiscal 2025 earnings is pegged at $20.06, unchanged in the past seven days. Intuit's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 12.15%. Its shares have risen 9% in the past year. The Zacks Consensus Estimate for MSFT's fiscal 2026 earnings is pegged at $15.32, unchanged in the past seven days. Microsoft's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.02%. The company's long-term earnings growth rate is 14.9%. Its shares have advanced 23.6% in the past year. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 Report Intuit Inc. (INTU): Free Stock Analysis Report Synopsys, Inc. (SNPS): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
01-08-2025
- Business
- Yahoo
Investors Heavily Search Oracle Corporation (ORCL): Here is What You Need to Know
Oracle (ORCL) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this software maker have returned +14.2%, compared to the Zacks S&P 500 composite's +3.4% change. During this period, the Zacks Computer - Software industry, which Oracle falls in, has gained 4.7%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Oracle is expected to post earnings of $1.47 per share for the current quarter, representing a year-over-year change of +5.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%. The consensus earnings estimate of $6.73 for the current fiscal year indicates a year-over-year change of +11.6%. This estimate has changed +0.3% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $7.66 indicates a change of +13.9% from what Oracle is expected to report a year ago. Over the past month, the estimate has changed +0.1%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Oracle. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. In the case of Oracle, the consensus sales estimate of $15.01 billion for the current quarter points to a year-over-year change of +12.8%. The $66.57 billion and $79 billion estimates for the current and next fiscal years indicate changes of +16% and +18.7%, respectively. Last Reported Results and Surprise History Oracle reported revenues of $15.9 billion in the last reported quarter, representing a year-over-year change of +11.3%. EPS of $1.7 for the same period compares with $1.63 a year ago. Compared to the Zacks Consensus Estimate of $15.54 billion, the reported revenues represent a surprise of +2.35%. The EPS surprise was +3.66%. Over the last four quarters, Oracle surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Oracle is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Oracle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. 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 Oracle Corporation (ORCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
