Why Microsoft (MSFT) Will Come Back into Favor in 2012...

While Microsoft (Nasdaq: MSFT) hasn't been a growth stock since 1998, some say 2012 could be "The Year of Microsoft."

Despite the stock's lackluster performance over the last 10 years, the company is still a leading maker of hardware and software, with steady growth from both consumers and businesses worldwide. Even as Microsoft has continued to make improvements through acquisitions and international expansion, the company has billions in cash on its balance sheet. An annual dividend currently yielding over 3 percent certainly adds to the picture too.

According to StreetInsider's Ratings Insider portal, 25 analyst firms rate Microsoft shares at Buy and 14 are Neutral on the stock. Analysts' price targets range from $26 to $33.

Possible 2012 catalysts which could put Microsoft back into favor:

• the partnership with Nokia (NYSE: NOK) and the push into the global smartphone market through the latest version of Windows Phone;
  
• a warm reception of Windows 8;
  
• continued growth of Xbox, Skype, and internet search; and
  
• the recent decision to embrace cloud computing and the potential growth in that environment.

Notably, shares of Microsoft (Nasdaq: MSFT) have fallen nearly 7 percent over 2011.

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