Last Updated: 13 Oct 2024
Executive Summary
Oracle Corporation (ORCL) is a leading provider of database software, cloud engineered systems, and enterprise software products. The company has a strong financial position with a market capitalization of $487 billion and an EBITDA of $21.8 billion. ORCL's stock price has been volatile in recent months, but it is currently trading at $175.77, close to its 52-week high. Analysts are generally bullish on ORCL, with a consensus price target of $178.49.
Company Overview
Oracle was founded in 1977 and is headquartered in Austin, Texas. The company has over 140,000 employees and operates in over 175 countries. Oracle's products are used by businesses of all sizes, including many Fortune 500 companies.
Fundamental Analysis
Oracle's financial performance has been mixed in recent years. Revenue growth has been slow, but the company has been able to improve its margins. In fiscal 2023, ORCL reported revenue of $53.8 billion and net income of $11.8 billion. The company's gross profit margin was 67.8%, and its operating margin was 30.5%.
ORCL's balance sheet is strong. The company has $66.2 billion in cash and equivalents and $53.3 billion in debt. ORCL's debt-to-equity ratio is 0.80, which is considered to be a moderate level of leverage.
Technical Analysis
ORCL's stock price has been in a strong uptrend since March 2023. The stock broke out of a resistance level at $150 in June and has since rallied to a 52-week high of $178.3. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign.
Short Term Outlook
ORCL's stock price is likely to continue to trade in a range between $170 and $180 in the short term. The stock could break out of this range if it can close above $180. However, if the stock falls below $170, it could retest its 50-day moving average.
Long Term Outlook
ORCL's long-term outlook is positive. The company is a leader in the database software market, and it is well-positioned to benefit from the growing demand for cloud computing. ORCL's stock price is likely to continue to appreciate over the long term.
Analyst Recommendations
Analysts are generally bullish on ORCL. The consensus price target is $178.49, which represents a potential upside of 1.5% from the current price. Eight analysts have a "Strong Buy" rating on ORCL, 12 have a "Buy" rating, 16 have a "Hold" rating, and none have a "Sell" or "Strong Sell" rating.
