The chart above points toward an increase of 14% and 17% in Microsoft's earnings over the next two fiscal years. That's why it may be a good idea to buy this stock following its recent pullback, as it is trading at 33 times earnings right now, which is in line with the tech-laden Nasdaq-100 index's earnings multiple.

Microsoft is set to report fiscal second-quarter earnings after the market closes Wednesday, with analysts largely bullish despite what Morgan Stanley called a growing “wall of worry."

Microsoft's stock price, trading between $400-450 for a couple of months now, is back to levels I consider reasonable for another purchase amidst

Microsoft 's ( MSFT 0.22%) quarterly results contained several offsetting factors to the mostly good figures overall. *Stock prices used were the afternoon prices of Feb. 2, 2025. The video was published on Feb.