Microsoft
MSFT
Inc. is scheduled to report earnings after Tuesday’s close. The stock hit a record high near $366.78/share in 2023 and is currently trading near $331/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $2.65/share on $54.49 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.69/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings have grown double digits in recent quarters thanks in part to strategic investments in ChatGPT’s parent company and other successful investments. The stocks sports a Price to Earnings (P/E ratio) of 34 which is above the S&P 500 but reflects strong earnings growth going forward.
A Closer Look At The Technicals
Technically, the stock is acting very well and just hit a fresh 52-week high in July 2023. The stock is -9% below its 52-week and it will not take a lot to see it gap up and hit new highs.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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