Latest news with #MSFT
Yahoo
12 hours ago
- Business
- Yahoo
Microsoft Corporation (MSFT) is Attracting Investor Attention: Here is What You Should Know
Microsoft (MSFT) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this software maker have returned +7.8%, compared to the Zacks S&P 500 composite's +6.4% change. During this period, the Zacks Computer - Software industry, which Microsoft falls in, has gained 12.9%. 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. 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. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Microsoft is expected to post earnings of $3.35 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +2%. The consensus earnings estimate of $13.33 for the current fiscal year indicates a year-over-year change of +13%. This estimate has changed +2.3% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $14.89 indicates a change of +11.7% from what Microsoft is expected to report a year ago. Over the past month, the estimate has changed +2%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Microsoft is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 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. For Microsoft, the consensus sales estimate for the current quarter of $73.71 billion indicates a year-over-year change of +13.9%. For the current and next fiscal years, $278.8 billion and $313.23 billion estimates indicate +13.7% and +12.4% changes, respectively. Microsoft reported revenues of $70.07 billion in the last reported quarter, representing a year-over-year change of +13.3%. EPS of $3.46 for the same period compares with $2.94 a year ago. Compared to the Zacks Consensus Estimate of $68.38 billion, the reported revenues represent a surprise of +2.46%. The EPS surprise was +8.13%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. 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. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. 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. 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 #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 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
Yahoo
12 hours ago
- Business
- Yahoo
Why Is Microsoft (MSFT) Up 7.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Microsoft (MSFT). Shares have added about 7.8% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Microsoft due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. It turns out, estimates revision have trended upward during the past month. Currently, Microsoft has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Microsoft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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
Forbes
15 hours ago
- Business
- Forbes
Buy MSFT Stock At $460?
23 May 2025, Bavaria, Munich: The Microsoft logo and lettering can be seen on the Microsoft ... More Deutschland GmbH headquarters building in Parkstadt Schwabing in Munich (Bavaria) on May 23, 2025. Photo: Matthias Balk/dpa (Photo by Matthias Balk/picture alliance via Getty Images) Microsoft (NASDAQ:MSFT) stock has experienced a notable increase of 16% over the last month, surpassing the S&P 500's 6% rise. This growth is primarily attributed to Microsoft's impressive Q1 earnings exceeding expectations and a positive outlook, bolstered by its dominance in cloud computing and AI, especially with significant Azure growth. However, following its recent ascent, is MSFT stock still worth buying? Yes, we believe that MSFT stock, which is currently priced around $460, offers an appealing buying opportunity. Though its present valuation is elevated compared to the benchmark index, making it susceptible to negative events, we do not see any significant reasons for concern. Our assessment stems from a thorough evaluation of Microsoft's present valuation relative to its historical operational performance and financial condition. We have examined Microsoft against key criteria: Growth, Profitability, Financial Stability, and Downturn Resilience. This evaluation indicates a robust operational performance and financial status, which we will explain in more detail below. That being said, if you are looking for upside potential with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative — it has outperformed the S&P 500 and achieved returns exceeding 91% since its launch. Separately, see – Nvidia Stock's 1 Big Risk Based on the price you pay per dollar of sales or profit, MSFT stock appears overpriced in relation to the broader market. Microsoft's Revenues have experienced significant growth in recent years. Microsoft's profit margins are significantly higher than those of most companies in the Trefis coverage universe. Microsoft's financial position is very solid. MSFT stock has experienced an impact that was slightly more favorable than the benchmark S&P 500 index during some recent downturns. Concerned about how a market crash might affect MSFT stock? Our dashboard How Low Can Microsoft Stock Go In A Market Crash? provides a comprehensive analysis of how the stock fared during and after previous market crashes. In conclusion, Microsoft's performance across the evaluated criteria is as follows: Microsoft has showcased strong performance in key financial metrics. Although its current valuation seems elevated compared to the broader market, it is consistent with Microsoft's own historical performance. For example, the current price-to-sales (P/S) ratio of 12.6x aligns with its 12.4x average over the past four years. Similarly, the price-to-earnings (P/E) ratio of 35x is in line with the stock's average P/E during the same timeframe. Looking forward, significant growth in Azure is expected to fuel further increases in valuation multiples. The company's revenue growth over the next three years is projected to average in the low double-digits, compared to a 12% average over the preceding three years. Overall, despite its recent increases, we believe MSFT stock continues to be an attractive buy at current levels. In fact, we estimate Microsoft's valuation to be $535 per share, indicating over 15% upside potential. Nevertheless, it is vital to recognize potential risks. A downturn in economic growth or a recession could result in decreased corporate investments in infrastructure, potentially affecting Microsoft's revenue growth. Even though MSFT stock has historically performed better than the benchmark index during economic downturns, a decline in its stock price during such situations cannot be dismissed. Not entirely satisfied with the volatile nature of MSFT stock? The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a proven history of consistently outperforming the S&P 500 over the past four years. What accounts for this? As a collective, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; a more stable investment experience, as demonstrated by HQ Portfolio performance metrics.
Yahoo
16 hours ago
- Business
- Yahoo
Microsoft Secures Massive Copilot Deal, Barclays Bets Big on AI Surge
May 30 - Microsoft (NASDAQ:MSFT) has struck a deal to supply Barclays (NYSE:BCS) with 100,000 licenses for its Copilot AI assistants. Under the deal, Barclays will implement Copilot across its workforce to streamline workflows, automate tasks and enhance decision-making. Warning! GuruFocus has detected 3 Warning Sign with MSFT. The bank's move signals a shift toward AI-driven efficiency in banking services, with Copilot's capabilities potentially covering areas from customer service to risk analysis. Barclays follows a growing list of companies, Accenture (NYSE:ACN), Toyota (NYSE:TM), Volkswagen (VWAGY) and Siemens (SIEGY), all of which use Copilot for more than 100,000 employees combined. Microsoft has been promoting Copilot aggressively, offering customization through plugins and Graph connectors to fit different industry needs. The software giant also rolled out Copilot Studio, enabling clients to build bespoke AI assistants for tasks such as automated claims processing or manufacturing insights. The firm aims to make Copilot integral to corporate operations worldwide. At $30 per user per month, these agreements could yield tens of millions annually, with bulk discounts likely for major corporations. This article first appeared on GuruFocus. 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
Yahoo
16 hours ago
- Business
- Yahoo
Should Invesco Dividend Achievers ETF (PFM) Be on Your Investing Radar?
The Invesco Dividend Achievers ETF (PFM) was launched on 09/15/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. The fund is sponsored by Invesco. It has amassed assets over $680.20 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market. Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies. Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.52%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.56%. Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Information Technology sector--about 23.10% of the portfolio. Financials and Healthcare round out the top three. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.60% of total assets, followed by Broadcom Inc (AVGO) and Apple Inc (AAPL). The top 10 holdings account for about 30.61% of total assets under management. PFM seeks to match the performance of the NASDAQ US Broad Dividend Achievers Index before fees and expenses. The NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years. The ETF has added about 1.70% so far this year and it's up approximately 13.15% in the last one year (as of 05/30/2025). In the past 52-week period, it has traded between $41.05 and $48.20. The ETF has a beta of 0.81 and standard deviation of 14.23% for the trailing three-year period, making it a medium risk choice in the space. With about 434 holdings, it effectively diversifies company-specific risk. Invesco Dividend Achievers ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PFM is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space. The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $67.93 billion in assets, Vanguard Value ETF has $133.01 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%. An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. 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 Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports 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
