Microsoft (NASDAQ:MSFT) 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.
Fool contributor Travis Hoium manages an account that owns shares of Apple and Microsoft. The Motley Fool recommends and owns shares of Apple and Google. It also owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.