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.

When a stock breaks out of a well-formed base, you normally want to see the Relative Strength Rating exceed 80.

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