Here is Why Growth Investors Should Buy Microsoft (MSFT) Now

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score helps in identifying growth stocks by analyzing real growth prospects beyond traditional attributes [2] - Microsoft (MSFT) is currently recommended as a strong growth stock due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [4] - Microsoft's historical EPS growth rate is 15.5%, with a projected EPS growth of 12.5% this year, surpassing the industry average of 12.3% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Microsoft has a year-over-year cash flow growth of 23.1%, significantly higher than the industry average of 8.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19%, compared to the industry average of 10.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - There have been upward revisions in Microsoft's current-year earnings estimates, with the Zacks Consensus Estimate increasing by 0.1% over the past month [9] Group 5: Overall Positioning - Microsoft has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for outperformance [11]