We all want to fill our stock portfolios with standout stocks, but that’s pretty challenging. If you’re fortunate, you might have a few already. Those significant gains can really help balance out the unavoidable losses that come with investing.
There are some stocks that have been big winners in the past and, well, they’re likely to continue that trend for a while.
Microsoft (NASDAQ: MSFT) is a major player, with its extensive Office 365 suite, the Azure cloud services, Xbox, Windows, and even LinkedIn under its umbrella. This stock has a solid track record, boasting an average annual return of around 25% over the last decade. In the first quarter of 2026, its revenue was up 18% year over year, while net income climbed by 12%.
The company has put a lot of resources into artificial intelligence (AI). CEO Satya Nadella expressed that their global cloud and AI infrastructure is essential for widespread adoption. It’s kind of exciting, really. He mentioned, “That’s why we continue to ramp up our investments in AI, both in capital and talent, to tap into the great opportunities ahead.”
Microsoft generates more cash than it requires for growth, so it returns some of that to its shareholders through dividends, which are currently at a yield of 0.77%. Not the highest, perhaps, but it has increased significantly from $2.09 per share a few years ago to $3.40 recently.
Also, the stock seems fairly valued, with a recent forward price-to-earnings ratio of 29x, which is just a bit below the five-year average of 30x. It’s worth noting how many analysts on Wall Street have a favorable view of the company. Since a significant portion of Microsoft’s business involves partnerships with other firms, growth seems quite feasible. For instance, Azure showed an impressive 40% revenue growth year over year in the last quarter.
Netflix (NASDAQ: NFLX) is another strong candidate with even more room for growth. Over the past decade, its average annual growth has been around 24%. In the fourth quarter of 2025, it generated revenue of $12 billion, marking about an 18% rise year-over-year and a net income surge of 29%. The boost from advertising revenue has been significant lately. They stated, “In 2025, during our third year of advertising sales, ad revenue soared more than 2.5 times compared to 2024, exceeding $1.5 billion.”
Despite that growth, the stock price saw a decline of around 12% over the past year as of late January. This, in part, relates to some uncertainty regarding acquisition bids. Warner Bros. Discovery, known for HBO and beyond, has drawn interest, with bids crossing $70 billion from various contenders. There’s concern that Netflix might overextend itself in such negotiations.
Interestingly, Netflix’s stock seems attractively priced, which isn’t always the case. Its recent forward P/E ratio sits at 27, comfortably below the average of 33 from the last five years.
If you’re interested in stocks like these, it might be worth taking a deeper look into either—or both. But even if those don’t catch your eye, there are plenty of other promising growth stocks out there.
Before considering buying Microsoft stock, be aware of what analysts think. For example, the Motley Fool Stock Advisor has highlighted stocks they believe have great potential, and Microsoft wasn’t featured in that top 10 list. Still, these selections might lead to substantial returns in the coming years.
Netflix was recommended back on December 17, 2004. If you had invested $1,000 then, it would have grown to about $450,256! As for Nvidia, recommended on April 15, 2005, a $1,000 investment would have swelled to about $1,171,666!
To put it into perspective, the Stock Advisor has an average return of 942%, compared to the S&P 500’s 196%, showcasing notable outperformance. So don’t miss the latest top stocks recommendation!
