In the latest close session, MicroStrategy (MSTR) was down 7.65% at $373.30. The stock fell short of the S&P 500, which registered a loss of 0.11% for the day. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq lost 0.82%.
Coming into today, shares of the business software company had gained 8.59% in the past month. In that same time, the Computer and Technology sector gained 8.76%, while the S&P 500 gained 5.17%.
The investment community will be closely monitoring the performance of MicroStrategy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be -$0.12, reflecting a 84.21% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $112.15 million, up 0.64% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$15.73 per share and revenue of $466.5 million, which would represent changes of -134.08% and +0.66%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MicroStrategy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. MicroStrategy is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, MicroStrategy is currently exchanging hands at a Forward P/E ratio of 55.37. This valuation marks a premium compared to its industry average Forward P/E of 26.66.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
