Is It Too Late To Consider Buying Microsoft Corporation (NASDAQ:MSFT)?
Feb 03
U.S. Market Analysis & Valuation
UpdatedFeb 05, 2023
DataAggregated Company Financials
Companies8996
- 7D1.7%
- 3M10.7%
- 1Y-9.6%
- YTD9.8%
The market is up 1.7% over the last week, with the Information Technology sector leading the way, up 3.8%. In contrast, the Energy sector is lagging, dropping 5.0%. Over the past year the market is down 9.6%. Earnings are forecast to grow by 14% annually.
Market Valuation and Performance
Has the U.S. Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 06 Feb 2023 | US$44.9t | US$20.6t | US$1.7t | 15.6x | 26.1x | 2.2x |
| Wed, 04 Jan 2023 | US$41.0t | US$20.6t | US$1.8t | 14.3x | 22.7x | 2x |
| Fri, 02 Dec 2022 | US$43.8t | US$20.5t | US$1.8t | 14.8x | 24.2x | 2.1x |
| Sun, 30 Oct 2022 | US$41.9t | US$20.2t | US$1.8t | 14.6x | 23x | 2.1x |
| Tue, 27 Sep 2022 | US$39.6t | US$19.9t | US$1.8t | 13.7x | 21.5x | 2x |
| Thu, 25 Aug 2022 | US$44.3t | US$19.9t | US$1.8t | 15.5x | 24.1x | 2.2x |
| Sat, 23 Jul 2022 | US$43.6t | US$19.4t | US$1.9t | 15.3x | 23x | 2.2x |
| Mon, 20 Jun 2022 | US$40.6t | US$19.4t | US$1.9t | 14.3x | 21.2x | 2.1x |
| Wed, 18 May 2022 | US$43.4t | US$19.4t | US$1.9t | 16x | 22.6x | 2.2x |
| Fri, 15 Apr 2022 | US$48.8t | US$18.8t | US$1.9t | 16.9x | 25.3x | 2.6x |
| Sun, 13 Mar 2022 | US$46.9t | US$18.9t | US$1.9t | 15.6x | 24.1x | 2.5x |
| Tue, 08 Feb 2022 | US$50.3t | US$18.7t | US$1.9t | 16.3x | 27x | 2.7x |
| Thu, 06 Jan 2022 | US$54.2t | US$18.3t | US$1.7t | 17.3x | 31.2x | 3x |
| Sat, 04 Dec 2021 | US$51.8t | US$18.2t | US$1.7t | 16.8x | 29.6x | 2.8x |
| Mon, 01 Nov 2021 | US$53.8t | US$17.8t | US$1.7t | 17.9x | 31.3x | 3x |
| Wed, 29 Sep 2021 | US$51.0t | US$17.4t | US$1.6t | 17.8x | 31.8x | 2.9x |
| Fri, 27 Aug 2021 | US$52.2t | US$17.3t | US$1.6t | 17.4x | 32.7x | 3x |
| Sat, 03 Jul 2021 | US$50.5t | US$17.2t | US$1.6t | 17.5x | 32.1x | 2.9x |
| Tue, 06 Apr 2021 | US$46.3t | US$16.2t | US$1.2t | 18.8x | 37.9x | 2.9x |
| Fri, 08 Jan 2021 | US$43.6t | US$15.6t | US$838.4b | 18x | 52x | 2.8x |
| Thu, 01 Oct 2020 | US$37.6t | US$15.3t | US$837.2b | 16.1x | 44.9x | 2.5x |
| Sun, 05 Jul 2020 | US$33.7t | US$15.3t | US$837.1b | 16.6x | 40.2x | 2.2x |
| Wed, 08 Apr 2020 | US$27.3t | US$15.9t | US$1.0t | 13x | 26.5x | 1.7x |
Price to Earnings Ratio
24.3x
Current Market PE
- Investors are pessimistic on the American market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 25.5x which is lower than its 3-year average PE of 33.1x.
Past Earnings Growth
- The earnings for American listed companies have grown 10% per year over the last three years.
- Revenues for these companies have grown 9.0% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the U.S. Market?
| US Market | 1.73% | |
| Telecom | 4.99% | |
| Tech | 3.82% | |
| Industrials | 2.42% | |
| Real Estate | 1.66% | |
| Financials | 1.52% | |
| Consumer Discretionary | 1.10% | |
| Materials | 0.75% | |
| Consumer Staples | 0.42% | |
| Healthcare | 0.31% | |
| Utilities | -1.08% | |
| Energy | -5.03% | |
Sector PE
- Investors are most optimistic about the Healthcare sector, which is trading close to its 3-year average PE ratio of 48.2x.
- This optimism is likely because analysts are expecting annual earnings growth of 13.9%, which is higher than its past year's earnings growth of 2.8% per year.
- Investors are most pessimistic about the Energy sector. Although, investor sentiment seems to have improved given that it's trading above its 3-year average of 0.71x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Discretionary sector, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings growth rate of 5.5% per year.
- In contrast, the Energy sector is expected to see its earnings decline by 6.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| AAPL Apple | US$154.50 | 5.9% +US$133.5b | -10.4% | PE25.7x | Tech | |
| META Meta Platforms | US$186.53 | 22.9% +US$85.7b | -21.3% | PE20.8x | Telecom | |
| MSFT Microsoft | US$258.35 | 4.1% +US$75.9b | -15.6% | PE28.5x | Tech | |
| GOOGL Alphabet | US$104.78 | 5.4% +US$55.8b | -26.9% | PE22.4x | Telecom | |
| TSLA Tesla | US$189.98 | 6.8% +US$39.4b | -38.3% | PE47.8x | Consumer Discretionary |
Market Insights
The US market experienced gains galore in the second half of the week after the Fed raised rates for the 8th time since March last year...
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