For new investors looking to create a portfolio from scratch, the process can be overwhelming. One way to simplify this task is to focus on stocks that are expected to outperform the market in the next 12 months. This approach has been shown to generate strong returns for investors.
One potential addition to your portfolio is Microsoft (MSFT), one of the largest technology providers globally. Microsoft has a significant market share for desktop operating systems and dominates the PC software market. Analysts have been bullish on MSFT, with the stock being added to the Zacks Focus List in early 2016. Since then, the share price has seen significant growth, and analysts have revised their earnings estimates upwards for fiscal 2024, with earnings expected to grow by 18.6% for the current fiscal year. This positive outlook for earnings can drive stock price momentum.
Investing in a stock like MSFT could potentially benefit from future increases in earnings estimates, leading to price appreciation. To stay informed about opportunities in the market, keeping an eye on recommendations from research firms like Zacks Investment Research can be helpful.
