In the latest trading session, MicroStrategy (MSTR) closed at $341.84, up -1.7% from the previous day. The change lagged the S&P 500’s 0.12% gain on the day. At the same time, the Dow fell 0.2% and the tech-heavy Nasdaq rose 0.29%.
Talking about today, the shares of the business software company had fallen by 7.55% last month. Over 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 show that analysts are expecting earnings of $31.05 per share and revenue of $502.4 million. These totals would represent changes of +124.92% and +0.63%, respectively, from last year.
Investors may also check out recent changes to MicroStrategy’s analyst estimates. These recent revisions 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 take advantage of this by using the Zacks Rank. The model takes these estimate changes into account 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 stable over the past month. MicroStrategy currently has a Zacks Rank #5 (Strong Sell).
In terms of valuation, MicroStrategy is currently trading at a Forward P/E ratio of 11.2. This represents a discount 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 lists the individual companies in each of these sectors in order from best to worst in terms of the average Zacks Rank. 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 use Zacks.com.
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