Can Microsoft Corporation (MSFT) Turn Into a Growth Stock?

I bet most people won’t believe it, but Microsoft Corporation (NASDAQ:MSFT) grew faster than Google when it comes to core operating cash flow. In the last year, Google’s core operating cash flow grew by 20.26% and Microsoft grew by 21.01%. By comparison, Apple actually saw their core operating cash flow decline by 0.93% and BlackBerry reported a decline of 52.66%.

A Claim You Couldn’t Make Ten Years Ago
When you look at stock valuations, Microsoft offers one of the most compelling values of the bunch. This was certainly something the company couldn’t claim ten years ago. Apple’s value still leads the way with a newly minted 2.8% yield combined with an expected growth rate north of 20%. With shares trading for nearly the same P/E as Microsoft, Apple Inc. (NASDAQ:AAPL) will have to miss earnings by a large amount to be a poor deal for investors.

Ironically, Google and Research In Motion Ltd (NASDAQ:BBRY) offer similar values, though in different ways. Google Inc (NASDAQ:GOOG) sells for over 17.7 times projected earnings, and is expected to grow earnings by about 15%. BlackBerry is generally expected to report small profits the next few years, but 40% of the company’s market cap. is the cash and investments on the balance sheet, and the company is free cash flow positive.

Microsoft Corporation (NASDAQ:MSFT) offers a class leading yield of about 2.9%, and a respectable growth rate of about 8.5%. With a relatively low P/E ratio, the stock looks like a good value. If the company can continue to grow its Business Division as well as Server & Tools business, Windows will actually be the company’s third largest division. With a new Xbox, new Windows 8 smartphones, and 20% cash flow growth, the stock looks like a real growth story once again…can you believe it?

The article Can This Company Become A Growth Stock Again? originally appeared on Fool.com and is written by Chad Henage.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.