Oracle Corporation (ORCL:NYE) Analysts rate as a Hold, $97 target

STA Research
by: STA Research

Based on the Oracle Corporation stock forecasts from 23 analysts, the average analyst target price for Oracle Corporation is USD 97.58 over the next 12 months. Oracle Corporation’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Oracle Corporation is Slightly Bullish , which is based on 8 positive signals and 4 negative signals. At the last closing, Oracle Corporation’s stock price was USD 71.79. Oracle Corporation’s stock price has changed by -0.99% over the past week, -1.01% over the past month and -13.39% over the last year.

Recently, Morgan Stanley maintained the Equal-Weight rating, and lifted the target to $88 from $87.

Oracle Corporation is a global provider of products and services for enterprise information technology environments. Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Fusion cloud advertising and customer experience, and NetSuite applications suite are among the Oracle cloud software as a service offerings. Oracle Corporation is based in Austin, Texas, and was founded in 1977.

 

What we like:

High market capitalization

This 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

This 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

The stock’s annual returns 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 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

This 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

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

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock 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 buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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