Analysts rate Oracle Corporation (ORCL:NYE) with a Hold rating and a $86 target

STA Research
by: STA Research
Oracle Corporation

Analysts rate Oracle Corporation (ORCL:NYE) with a consensus Hold rating and an average Oracle stock price target of $86.87 per share over the next 12 months.

STA Research recently maintained the $79 Oracle price target and rates the stock as a Hold.

Based on the Oracle stock forecast from 17 analysts, the average analyst Oracle stock price target is USD 86.87 over the next 12 months. Oracle Corporation’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Oracle stock forecast is Slightly Bullish, which is based on 9 positive signals and 4 negative signals. At the last closing, Oracle stock price was USD 75.91Oracle stock price has changed by +1.23% over the past week, -1.63% over the past month and -15.35% over the last year.

About Oracle Corporation (ORCL:NYE):

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications. The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services. In addition, it provides cloud and license business’ infrastructure technologies. The company markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.

 

What we like:

High market capitalization:

Oracle stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns:

Oracle stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

Oracle stock forecast shows that the annual returns for the stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth:

ORCL stock forecast shows that the stock has shown top quartile dividend growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to book value:

Oracle stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

ORCL price target is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis:

ORCL price target is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth:

ORCL stock forecast shows that the stock has shown below median revenue growth in the previous 5 years compared to its sector

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