Earnings in the Spotlight for Microsoft Corporation (NASDAQ:MSFT) - Wagner Review

EPS is commonly considered to be one of the most important factors when evaluating the price of a share. Taking a look at the current quarter consensus earnings per share estimate provided by Zacks Research, we can see that the number for Microsoft Corporation (NASDAQ:MSFT) is 1.21. This estimate is using projections provided by 14 Wall Street analysts. Last quarter, the company notched a quarterly EPS of 1.14. Trading around earnings reports can be difficult. Gauging which direction a stock will shift after earnings can sometimes be a toss up. Sometimes, companies may report great numbers with a solid beat, and the stock will head lower. Other times, a stock will miss projections, but the price will rise. Traders who are able to take on the risk may be able to withstand the high volatility that could follow after the report is released.

One of the most famous sayings in the stock market is “buy low, sell high”. This may seem like an oversimplified statement, but there are many novice investors who often do the complete opposite. Many investors may be looking too closely at stocks that have been on the rise, and they might not be checking on the underlying fundamental data. They may be hoping to ride the wave higher, but may end up shaking their heads. On the flip side, many investors may hold onto stocks for far too long after they have slipped drastically. Waiting for a bounce that may never come can cause frustration and plenty of second guessing. Successful investors are typically able to locate stocks that are undervalued at a certain price. This may take a lot of practice and dedication, but it may do wonders for the health of the portfolio.

Sell-side Street analysts often offer stock ratings for companies that they cover. Based on analysts polled by Zacks Research, the present average broker rating on shares of Microsoft Corporation (NASDAQ:MSFT) is presently 1.14. This average rating includes analysts who have given Sell, Buy and Hold ratings on the equity. This rating uses a numerical recommendation scale from 1 to 5. A score of 1 would represent a Buy recommendation, and a score of 5 would indicate a Sell recommendation. Out of all the analysts providing recommendations, 21 have rated the stock a Strong Buy or Buy, based on data provided by Zacks Research.

Taking a look at some target price information, we note that shares of Microsoft Corporation (NASDAQ:MSFT) presently have an average target price of $138.29. This is the consensus target price using estimates offered by analysts polled by Zacks Research. Sell-side analysts can calculate price target projections using various methods. Many investors will track stock target prices, especially when analysts make changes to the target. A thorough research report will generally give detailed reasoning for a certain target projection. Some investors may watch sell-side targets very closely and use the data to help with their own stock research.

Let’s shift the focus and look at some historical stock price action on shares of Microsoft Corporation (NASDAQ:MSFT). After a recent market scan, we have seen that the stock has been trading near the $132.32 level. Investors may also be tracking the current stock price in relation to its 52-week high and low. The 52-week high is currently sitting at $132.6, and the 52-week low is $94.13. When the stock starts moving towards the 52-week high or 52-week low, investors may pay added attention to see if there will be a breakthrough that level. Over the last 12 weeks, the stock has moved 10.06%. Since the beginning of the calendar year, we can see that shares have changed 30.27%. Over the past 4 weeks, shares have moved 2.63%. Over the previous 5 sessions, the stock has moved 3.52%.

Investors have the ability to approach the stock market from various angles. This may include using technical analysis, fundamental analysis, or a combination or the two. Investors watching the technical levels may be trying to chart patterns and discover trends in stock price movement. Investors tracking the fundamentals may be looking closely at many different factors. They may be focused on industry performance, earnings estimates, dividend payouts, and other factors. They might also be studying how the company is run, and trying to figure out the true value of the firm. Keeping track of all the data may seem overwhelming, but it may help give a needed boost to the portfolio.

Let's block ads! (Why?)