Microsoft and Oracle may be bargain stocks, according to this analysis

The recent pressure on the software sector means some stocks backed by strong fundamentals are now trading at bargain levels.

Two high-profile examples are Microsoft

MSFT and Oracle ORCL, whose shares have fallen in recent months over dual concerns around massive artificial-intelligence spending and a potential slowdown in their software businesses. But that means these stocks now trade at attractive price/earnings multiples compared with the S&P 500 SPX, and with much better two-year projections for sales growth than the index as a whole.