Microsoft (MSFT) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for assessing stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in portfolio creation [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with a 3 (Hold) rank should also have A or B Scores to ensure potential upside [9] Microsoft (MSFT) Overview - Microsoft Corporation holds over 73% market share in the PC software market and is rated 2 (Buy) on the Zacks Rank with a VGM Score of B [11] - The company is projected to achieve year-over-year earnings growth of 13% for the current fiscal year, supported by a Growth Style Score of B [11][12] - Recent analyst revisions have increased the earnings estimate for fiscal 2026 by $0.09 to $15.41 per share, with an average earnings surprise of +7% [12]