Is Yahoo! Inc. (YHOO) Worth Buying in 2013?

Microsoft Corporation (NASDAQ:MSFT) trades at 15x earnings, but only a 8x forward P/E, suggesting investors are overlooking its growth prospects. Microsoft expects to grow sales 9% in FY2013 and 7% in FY2014, on the back of new Windows OS releases. Higher product volume is expected to help boost sales, but we’d remain a bit cautious until we see the extent of its hardware plans over the next two years.

One of Microsoft’s big initiatives is its push toward mobile, not to mention launching Office 2013, and entering the tablet market with its Surface tablet, so next quarter will be a big one for the tech giant. Billionaire Steven Cohen of SAC Capital is one of Microsoft’s key investors (check out Steven Cohen’s top picks).

Last but certainly not least, Comcast Corporation (NASDAQ:CMCSA) is a massive media company that expects revenues to be up 9% in 2012 and 2% in 2013. These revenue increases are expected to be driven by higher penetration of its bundled services. Comcast’s merger with NBCUniversal is beginning to pay dividends with the latter’s higher affiliate and advertising revenues. Comcast’s cash position is also robust at over $9 billion thanks to various asset divestitures. Ken Griffin – founder of Citadel Investment Group – was one of Comcast’s big-name investors last quarter (check out Ken Griffin’s newest picks).

In short, we see Yahoo as an interesting turnaround play and believe the search company will continue to focus on profit maximization by entering high-growth markets, in addition to selling off under-performing assets. For more tech-related coverage, continue reading below:

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