14 of 40
BACK NEXT
BARGAIN GROWTH: Microsoft
Ticker: MSFT
Market cap (billions): $262.3
PEG ratio: 1.2
Earnings growth*: 12%
Debt/equity ratio: 0

The software giant most famous for its Windows operating system is looking to reach past its traditional desktop markets for long-term growth. Microsoft has expanded into the Web-based software market, and its Xbox 360 game console has been a big hit.

Of course, the company continues to play catch-up to Google in online advertising. Microsoft is still considering a partnership with Yahoo, despite its failed takeover attempt. But Microsoft remains a strong company trading at an attractive price. Its earnings are expected to increase by approximately 12% annually over the next few years, and it trades for just 14 times earnings, giving it a PEG of 1.2.

NEXT: BARGAIN GROWTH: Parker Hannifin
Last updated June 20 2008: 2:35 PM ET
Criteria include PEG ratios (price/earnings ratio divided by earnings growth rate) below S&P 500's PEG ratio of 2.2, long-term earnings growth equal to or greater than the S&P 500's estimated 7% rate, and debt-equity ratio below 0.33.
*Wall Street estimates for the next three to five years.
Source: Zacks Investment Research
Fortune 40: Full list A complete list of all 40 stocks, with live financial data. (more)
Ultimate mutual fund portfolioIf you crave diversification, stability, and results - but you'd rather leave the hard work to a savvy pro - this collection is for you. (more)
6 real estate bargains The housing downturn's upside? You don't have to go overseas anymore for your dream retirement home. We found the six best markets for deals. (more)

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.