In the latest trading session, MicroStrategy (MSTR) closed at $341.84, marking a -1.7% move from the previous day. This change lagged the S&P 500's 0.12% gain on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.29%.
Coming into today, shares of the business software company had lost 7.55% in the past month. In that same time, the Computer and Technology sector gained 2.32%, while the S&P 500 gained 0.09%.
Wall Street will be looking for positivity from MicroStrategy as it approaches its next earnings report date. The company is expected to report EPS of $0.74, up 177.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $126.2 million, up 0.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.05 per share and revenue of $502.4 million. These totals would mark changes of +124.92% and +0.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MicroStrategy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MicroStrategy currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, MicroStrategy is currently trading at a Forward P/E ratio of 11.2. This represents a discount compared to its industry's average Forward P/E of 28.03.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MSTR in the coming trading sessions, be sure to utilize Zacks.com.
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