Microsoft (MSFT 1.51%) has a forward P/E ratio of 9 and a 3.3% dividend yield, valuations usually reserved for companies with dim future prospects. But a recent report by IDC suggests that Microsoft may have finally created a mobile operating system consumers will buy, predicting 10% market share in the fast-growing market. This entrance into tablets and the blurring between PCs and tablets are just two of the reasons Fool analyst Travis Hoium thinks the stock can outperform the market long term.
Microsoft has been stuck in a rut for a decade, but it may be time to break out.
About the Author
Travis Hoium is a contributing Motley Fool stock market analyst covering solar energy, technology, and growth stocks. Before The Motley Fool, Travis was a mechanical engineer at 3M and founded a virtual reality company. He holds a bachelor’s degree in mechanical engineering and a master’s degree in business administration from the University of Minnesota.