Valued at $718 billion, Oracle Corp. (ORCL) is one of the largest enterprise-grade database, middleware, and application software providers. ORCL currently has momentum and is hitting new highs. Many investors and analysts also think the double-digit projections of revenue and earnings growth will continue, writes Jim Van Meerten, analyst at Barchart.
Oracle has expanded its cloud computing operations over the last couple of years. The company offers cloud solutions and services that can be used to build and manage various cloud deployment models. ORCL checks all the boxes I’m looking for in a strong stock – and since the Trend Seeker tool signalled a buy on May 12, the stock has gained 63.1%.
ORCL Price vs. Daily Moving Averages
Oracle shares hit a new 52-week high on July 31, touching $260.87 in intraday trading and closed Wed., Aug. 6, within 1.7% of that high. It has a Weighted Alpha of +98.97 and an 100% “Buy” opinion from Barchart.
Oracle is also trading above its 20-, 50-, and 100-day moving averages. The Relative Strength Index (RSI) is at 68.5%. And there is a technical support level around $253.15.
Meanwhile, revenue is projected to grow 16.2% this year and another 19.6% next year. Earnings are estimated to increase 12.5% this year and an additional 20.75% next year.
The Wall Street analysts tracked by Barchart have issued 25 “Strong Buy,” one “Moderate Buy,” and 10 “Hold” opinions on the stock. Value Line gives the company its above-average rating and has a price target of $304. CFRA’s Market Scope rates the stock a “4 Star Buy.”
That said, ORCL is volatile and even speculative in the current environment. That means investors should use strict risk management and stop-loss strategies.
