Why Microsoft (MSFT) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium offers various tools to help investors maximize stock market opportunities and invest confidently [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the short term [3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like one-week price changes and monthly earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating based on value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks averaging a +23.81% annual return since 1988 [8] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [9] Stock to Watch: Microsoft (MSFT) - Microsoft holds a dominant position in the PC software market with over 73% market share in desktop operating systems [12] - Currently rated 3 (Hold) with a VGM Score of B, Microsoft has a Growth Style Score of A, forecasting a 14.4% year-over-year earnings growth for the current fiscal year [12] - Recent upward revisions by 11 analysts for fiscal 2026 have increased the Zacks Consensus Estimate to $15.61 per share, with an average earnings surprise of +8.5% [13]