Oracle stock: buy or sell
Updated on:
May 17th, 2021
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Oracle stock brief
- Oracle closed last Friday at $78.89 after barely moving a 0.96% breaking a streak of 3 sessions in red.
- Barclays published a neutral rating for Oracle on Monday, with a forecast of $80.00
- Price is drawing a scaled uptrend since October 2020 with higher tops and higher bottoms. This uptrend marked a 44.25% gain
- Oracle Corporation provides products and services that address enterprise information technology environments worldwide.
Should I buy Oracle stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $ORCL stock a buy?
In the current situation of Oracle there is just one buy setup eligible:
Uptrend buy setup
Oracle stock continues to trend higher since in October 2020 and marked an amazing 44.25% gain. Price marked a local bottom in this uptrend at $73.85 in late April, and since then it bounced up a 6.82%. Now, it's just 1.67% away from breaking out above its last top and resume the uptrend. The new buy point is therefore at $80.21. If you decide to enter this trade, the suggested stop loss is at $72.19
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $80.21 | $72.19 | 10.00% |
Should I sell Oracle stock?
"To sell or not to sell", if you are holding Oracle shares?. Just as when we have to buy shares, deciding when is appropiate to sell is not a whimsy decision, and we must use our own trading strategy. Our trading system selects very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups should not be used for selling short $ORCL stock
As a golden rule, you should never keep a trade that produces losses greater than those expected upon purchase. When to sell shares should always be determined by the stop-loss (automatic or manual)
Is it time to sell Oracle stock?
In the current situation of Oracle there is not any eligible sell setup, so Oracle stock holders with operations in profit can keep their positions
Oracle ratings
In the last 30 days, 7 analyst ratings were published for Oracle
| Brokerage firm | Rating |
|---|---|
| Apr 21st, 2021 | |
| DZ Bank | |
| Apr 22nd, 2021 | |
| Cowen | Buy |
| Wolfe Research | |
| Apr 27th, 2021 | |
| DZ Bank | |
| Apr 28th, 2021 | |
| Wolfe Research | |
| May 10th, 2021 | |
| Barclays | |
| May 17th, 2021 | |
| Barclays | |
Oracle stock analysis
Oracle stock started an uptrend in October 2020, and grew an amazing 44.25%. The price shows higher highs and higher lows, and along the way provided some buy points for those who wanted to invest. Latest low was in late April, when price bounced at $73.85. Now, the price trades in a consolidation between its last top ($80.21) and its last bottom ($73.85)
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band on May 7, the price corrected downwards by 2.05%. The price is moving very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last Tuesday after just crossing to the overbough zone for just one day (weak signal). The RSI reading last Friday was 60. Since that level was lost, Oracle price fell a 1.57%
Oracle stock price history
Oracle started trading on Mar 12th, 1986 at $0.05 per share1. Since then, ORCL stock surged by 157,680.00%, with an average of 4,505.14% per year. An investment of thousand dollars on Mar 1986 would worth $1,577,800.00 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Oracle stock
Nobody knows how much a share will be priced in the future. Banks and financial organisations publish their analysis predicting how a stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions release their price predictions based on the stock price action and the company fundamental data. Most of these predictions follow the publication of new financial information by the company, and usually. If you are a small trader you should not trade based on these forecasts.
Averaging all price targets exposed below, the predicted price for Oracle stock is $80.00. Oracle closed at $78.89 last Friday, so the target price is forecasting a growth by 1.41%.
| Brokerage firm | Price target |
|---|---|
| Apr 21st, 2021 | |
| DZ Bank | $80.00 |
| Apr 22nd, 2021 | |
| Cowen | $77.00 → $85.00 |
| Wolfe Research | Not available |
| Apr 27th, 2021 | |
| DZ Bank | $80.00 |
| Apr 28th, 2021 | |
| Wolfe Research | $75.00 |
| May 10th, 2021 | |
| Barclays | $80.00 |
| May 17th, 2021 | |
| Barclays | $80.00 |
Earnings and financials
Investors event was hosted by Oracle ($ORCL) last March after presenting the financial report. Oracle surpassed consensus earnings estimates and posted of $1.16, that is a 4.50% increase compared to the initial forecasts of $1.11. On the other hand, reported revenues of $10.1 billion were in line with consensus forecasts.
Same quarter one year ago, reported EPS was $0.97, so current EPS means an increase of 19.59%. Sales just moved on an annualized basis in the , from $98.0B to $100.9B last quarter.Oracle ($ORCL) posts Q4 financial report mid next June. Wall Street expects of $1.31, compared to Q3 that was $1.16.
Oracle performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Oracle ($ORCL) | 0.70% | 25.50% | 38.90% |
Disclaimer:
The opinions contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the particular scenarios of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for education purposes onlyOracle summary
| Friday, May 14th, 2021 | |
|---|---|
| Open | $78.12 |
| Close | $78.89 |
| Day range | $78.12 - $79.05 |
| Previous close | $78.14 |
| Session gain | 0.96% |
| Average true range | $1.94 |
| 50d mov avg | $73.48 |
| 100d mov avg | $68.14 |
| 200d mov avg | $62.78 |
| Earnings date | June 15th, 2021 |