Microsoft Stock May Be Due for Another Big Rally

Microsoft's stock price has been on a rollercoaster ride in 2026. After a poor start to the year, followed by ups and downs, strong fiscal Q4 results in July led to a convincing rally. However, the stock is now back to flat for the year, while the S&P 500 has risen over 12%. Despite this, some analysts think Microsoft may be due for another big rally.

The company's forward price-to-earnings (P/E) ratio is still below its historical norms, making it a relatively cheap stock. However, it's not as cheap as it was before the Q4 report. When compared to other tech stocks like Nvidia, Alphabet, and Amazon, Microsoft's P/E ratio is higher, but its growth rate is slower.

According to The Motley Fool, investors may be better off putting their money into these other three tech stocks, which have more upside potential than Microsoft. The Motley Fool Stock Advisor analyst team has identified the 10 best stocks for investors to buy now, and Microsoft wasn't one of them.