ORCL [NYSE] Oracle Corporation Technology | Software - Infrastructure | USA Oracle Corporation provides products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle enterprise resource planning (ERP) cloud, Oracle enterprise and performance management cloud, Oracle supply chain management cloud, Oracle human capital management cloud, Oracle customer experience cloud, and NetSuite application suite. 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, such as the Oracle Database, an enterprise database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities through its Oracle cloud infrastructure as a service offerings. Further, it offers infrastructure offerings comprising Oracle autonomous data warehouse cloud service, Oracle autonomous transaction processing cloud service, Internet-of-Things, digital assistant, and Blockchain. Additionally, the company provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services. 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.
Orcale (ORCL) Surges Above Price Targets Mon, Jun 7, 2021 Thus far in 2021, most of the 30 largest S&P 500 stocks are in the green on a year-to-date basis with a few notable exceptions. The largest company with a $2.1 trillion market cap, Apple (AAPL), has fallen 5.88% year-to-date and is down nearly 14% from its 52-week high. Of the 30 largest stocks, the only two other stocks that are down by more year-to-date and are also further below their 52-week highs are Netflix (NFLX) and Tesla (TSLA). TSLA has been particularly hard hit with a 17% loss so far in 2021 which brings it down 35% from its high. Conversely, Alphabet (GOOG), JPMorgan Chase (JPM), NVIDIA (NVDA), Bank of America (BAC), and Oracle (ORCL) are some of the stocks that are closest to new highs (around 1% away) and are up around 30% or better YTD. Unsurprisingly for an Energy sector stock, the best performer this year has been Exxon Mobil (XOM) which is closing in on a 50% gain YTD. After setting new record highs right around a month ago, the S&P 500 pulled back to its 50-DMA which it found support at on May 12th. The subsequent rally since then has seen the index make a run back up to those record highs which it has been hovering around in recent days. Since its May 12th low, by far the two best-performing stocks in the 30 largest stocks have been NVIDIA (NVDA) which has gained 27.71%, and salesforce.com (CRM) which has risen a smaller, but still impressive, 12.85%; both companies reported triple plays in late May which partially played a role in that strength. While far from a leader, AAPL is also up in that time as is the rest of the trillion-dollar market cap club. Another interesting thing to note of the stocks in the table above is their distances from their analyst price targets. There are a handful like JPMorgan Chase (JPM), NVIDIA (NVDA), and Bank of America (BAC) that are currently within 1% of their consensus price targets. After their strong runs this year, though, the median distance from a target for the full list is approximately 10% below. BAC is actually slightly above its target, and not many others can say that. In fact, the only other name of the largest stocks currently trading above its analyst price target is Oracle (ORCL), and it's doing so in a big way. As shown above, ORCL is currently over 18% above its target. Going back through the history of the data for the stock, no other period since 2003 has seen ORCL trade as elevated above its target as it does now. For ORCL to get back below its average price target, either its share price would need to fall or analysts would need to significantly increase their price targets. Looking at the other end of the spectrum, Amazon (AMZN) and Apple (AAPL) are the two names furthest below their price targets. For each of these stocks, trading that far below the analyst price target has been relatively uncommon over the past several years. For these two stocks to get back to where they normally sit relative to analyst price targets, either the stocks need to rise or analysts need to lower their price targets. For these two mega-cap behemoths, we think the latter is more likely. While it does not stand out from the list of the other largest stocks as it only trades 6.5% below its target, TSLA is also notable. Over the past two years, the stock has continuously left its targets in the dust on average sitting 26% above. In July of last year, TSLA's price even doubled the target price. But with the stock's weakness this year, its distance from its price target is much closer in line with the historical average.
Oracle (ORCL) Joins the Pack Mon, Sep 9, 2024 When you think of the major cloud infrastructure providers, Amazon.com (AMZN), Alphabet (GOOGL), and Microsoft (MSFT) are the first names that typically come to mind. Given that their market caps are all well into the trillions, it makes sense, but one name saying "don't forget about me" is Oracle (ORCL). If you compare the performance of the four stocks since the launch of ChatGPT, ORCL's 74.6% gain lands right in the middle of the pack, ahead of GOOGL and MSFT but trailing AMZN's gain of 82%. This year, though, ORCL has been the clear leader. With a gain of over 35%, it has doubled AMZN's 15.2% move and more than quadrupled the gains of GOOGL and MSFT. What's most impressive about ORCL's performance is that it's still right near its highs of the year even as the other three stocks are in drawdowns of 12%-20%. Making ORCL's performance even more impressive is that the company has reported weaker-than-expected sales in each of its last four earnings reports. Last September and December, those weaker-than-expected revenues were not met kindly by the market as the stock experienced one-day declines of 12.4% and 13.5% which were the two largest one-day earnings declines since at least 2001! Following its March and June reports, though, the company still reported weaker-than-expected sales, but each of those reports were followed by one-day gains of 13.3% and 11.8% - ranking as the third and fourth strongest one-day gains in reaction to earnings since at least 2001. While no investor ever wants to see a company report weaker-than-expected sales, they were able to look past that shortfall as the company reported a new cloud partnership with Google, 50%+ growth in its cloud infrastructure services unit, and a higher-than-expected backlog. Even as shares of ORCL have kept pace with the three major cloud providers since the launch of ChatGPT and outperformed handily so far this year, from a valuation perspective, shares trade more in line with the market. At 22.6x estimated earnings for the current year, ORCL's multiple is slightly more than three turns higher than GOOGL, and well below the multiples of AMZN and MSFT. With a market cap of nearly $400 billion, ORCL is far from an under-the-radar company, but it still doesn't get the same attention as many of its peers. Its performance this year illustrates that the best returns in the market don't always come from the places everyone else is already looking.
