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Why Microsoft (MSFT) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-10-09 14:50
Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score identifies attractive stocks using ratios like P/E and Price/Sales, focusing on discounted stocks [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings and cash flow [4] - The Momentum Score helps investors capitalize on price trends, using factors like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] - 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 4 (Sell) or 5 (Strong Sell) rating, even with high Style Scores, are less favorable due to declining earnings forecasts [10] Company Spotlight: Microsoft - Microsoft Corporation holds over 73% market share in the desktop operating system sector and is rated 2 (Buy) on the Zacks Rank with a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 4.9% in the past four weeks [11] - Recent upward revisions in earnings estimates for fiscal 2026 have raised the Zacks Consensus Estimate to $15.41 per share, with an average earnings surprise of +7% [12]
Microsoft (MSFT) is a Top-Ranked Growth Stock: Should You Buy?
ZACKS· 2025-10-08 14:46
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]