Microsoft (MSFT) upgraded to Zacks Rank #2 (Buy) due to positive earnings outlook

From NASDAQ.: 2025-05-05 12:00:00

Microsoft (MSFT) has been upgraded to a Zacks Rank #2 (Buy) due to an upward trend in earnings estimates, impacting stock prices. The Zacks rating system focuses on the consensus EPS estimates from analysts for current and future years, reflecting positivity about Microsoft’s earnings outlook.
The Zacks rating system, which tracks earnings estimate revisions, is useful for investors as it correlates with stock price movements. Institutional investors use earnings estimates to calculate fair value, resulting in buying or selling stocks. Rising earnings estimates for Microsoft imply business improvement, driving stock price higher.
Earnings estimate revisions for Microsoft show an expected $13.27 EPS for the fiscal year ending June 2025, a 12.5% change from the previous year. Analysts have increased the Zacks Consensus Estimate for the company by 1.5% over the past three months, indicating positive sentiment towards Microsoft’s performance.
Microsoft’s Zacks Rank #2 places it in the top 20% of Zacks-covered stocks for estimate revisions, indicating potential for the stock to move higher. The Zacks rating system maintains an equal proportion of ‘buy’ and ‘sell’ ratings for all stocks, with only the top 20% receiving ‘Strong Buy’ or ‘Buy’ ratings, suggesting market-beating returns.
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Read more at NASDAQ.: Microsoft (MSFT) Upgraded to Buy: What Does It Mean for the Stock?