4-Star Stocks Poised to Pop: Microsoft

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, software behemoth Microsoft (NAS: MSFT) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Microsoft's business and see what CAPS investors are saying about the stock right now.

Microsoft facts

Headquarters (founded)Redmond, Wash. (1975)
Market Cap$253.8 billion
IndustrySystems software
Trailing-12-Month Revenue$73.0 billion
ManagementCEO Steven Ballmer (since 2000)
CFO Peter Klein (since 2009)
Return on Equity (average, past 3 years)41.3%
Cash/Debt$58.2 billion / $13.2 billion
Dividend Yield2.6%
CompetitorsApple
Google
Oracle

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 87% of the 15,550 members who have rated Microsoft believe the stock will outperform the S&P 500 going forward.  

A couple of months ago, one of those Fools, Speachless, tapped the stock as a solid blue-chip selection:

Despite the fact that every one complains about the products, they still buy them. Yes there are threats galore, "the cloud", Google, Facebook, open source, etc, but despite all of that [Microsoft] thrives. Explosive growth is over, but I don't see any indications of a slow or rapid decline.

So stable business, dominant in several of their spaces, OK dividend which is regularly raised, lots of cash, lots of staying power, this stock will let me sleep at night and with dividend reinvestment, hopefully retire with a reasonable income stream.

If there was ever a buy and hold, this looks like it.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Microsoft may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft, Apple, Google, and Oracle. Motley Fool newsletter services have recommended buying shares of Microsoft and Apple, as well as creating a bull call spread position in Apple. 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 Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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