Microsoft (MSFT) closed at $428.50 in the latest trading session, marking a -0.12% move from the prior day. This move lagged the S&P 500's daily gain of 0.88%. Elsewhere, the Dow saw an upswing of 1.24%, while the tech-heavy Nasdaq appreciated by 0.65%.

The software maker's shares have seen a decrease of 1.43% over the last month, not keeping up with the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.

Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to go public on January 29, 2025. The company is forecasted to report an EPS of $3.13, showcasing a 6.83% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $68.75 billion, up 10.86% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.92 per share and revenue of $277.69 billion, indicating changes of +9.49% and +13.29%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Microsoft should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. At present, Microsoft boasts a Zacks Rank of #4 (Sell).

With respect to valuation, Microsoft is currently being traded at a Forward P/E ratio of 33.21. This signifies a premium in comparison to the average Forward P/E of 31.04 for its industry.

It is also worth noting that MSFT currently has a PEG ratio of 2.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.38.