Oracle stock: buy or sell?
Updated on:
October 18th, 2019
4
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure technologies for information technology (IT) 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 choose 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.None of our preferred buy setups matches with Oracle stock situation right now, hence this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Oracle stock a buy?
Banks and financial institutions post stock ratings everyday.
At Stocks2.com, we detected 15 ratings published for ORCL stock in the last month. The general sentiment of these ratings is bullish for ORCL stock, with 8 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-27 | BMO Capital Markets | n/a | Market Perform |
| 2019-9-24 | Credit Suisse Group | n/a | Buy |
| 2019-9-20 | Goldman Sachs Group | n/a | Buy |
| 2019-9-18 | Credit Suisse Group | n/a | Buy |
| 2019-9-13 | Wedbush | n/a | Neutral |
| 2019-9-13 | Argus | n/a | Buy |
| 2019-9-12 | UBS Group | n/a | Neutral |
| 2019-9-12 | Sanford C. Bernstein | n/a | Buy |
| 2019-9-12 | Royal Bank of Canada | n/a | Neutral |
| 2019-9-12 | JPMorgan Chase & Co. | n/a | Neutral |
| 2019-9-12 | Goldman Sachs Group | n/a | Buy |
| 2019-9-12 | Credit Suisse Group | n/a | Buy |
| 2019-9-12 | BMO Capital Markets | n/a | Market Perform |
| 2019-9-12 | Barclays | n/a | Equal Weight |
| 2019-6-20 | Wells Fargo & Co | n/a | Outperform |
Oracle stock analysis
Daily outlook
Shares of Oracle closed on October/18 at $54.55 and decreased an unpleasant -0.93%.
Shares of Oracle decreased an unpleasant -0.93% and closed at $54.55. On September ORCL price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On July, ORCL hit new all time highs, pushing higher previous ATH of $59.17 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
Oracle closed this week at $54.55 and dropped a horrible -4.11%.
Oracle stock just marked a top under its last top. Athought it's not concerning right now, investors in ORCL should be alerted as this could be a warning for future complications. It's important ORCL stock price keeps the level, and maybe bounce up from there forming a double bottom configuration. Not so far away is the last price record Oracle marked early July. Since early September when ORCL stock price broke up the SMA40w line, it gained $2.72 (5.25%).
Oracle stock price history
Oracle stock went public on March 12th, 1986 with a price of $0.061. Since then, ORCL stock surged a 90,816.70%, with an average of 2,752.00% per year. If you had invested $1,000 in Oracle stock in 1986, it would worth $908,167.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Oracle stock historical price chart
ORCL stock reached all-time highs on July with a price of $59.99.
Oracle stock price target is $60.40
Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 14 price predictions for Oracle stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-27 | BMO Capital Markets | Raises Target | $60.00 | $62.00 | 3.3% |
| 2019-9-24 | Credit Suisse Group | Set Price Target | n/a | $62.00 | - |
| 2019-9-20 | Goldman Sachs Group | Set Price Target | n/a | $62.00 | - |
| 2019-9-18 | Credit Suisse Group | Set Price Target | n/a | $62.00 | - |
| 2019-9-13 | Wedbush | Reiterates | n/a | $55.00 | - |
| 2019-9-12 | UBS Group | Set Price Target | n/a | $57.00 | - |
| 2019-9-12 | Sanford C. Bernstein | Set Price Target | n/a | $66.00 | - |
| 2019-9-12 | Royal Bank of Canada | Set Price Target | n/a | $57.00 | - |
| 2019-9-12 | JPMorgan Chase & Co. | Set Price Target | n/a | $56.00 | - |
| 2019-9-12 | Goldman Sachs Group | Set Price Target | n/a | $62.00 | - |
| 2019-9-12 | Credit Suisse Group | Set Price Target | n/a | $62.00 | - |
| 2019-9-12 | BMO Capital Markets | Reiterates | $59.00 | $60.00 | 1.7% |
| 2019-9-12 | Barclays | Lowers Target | $59.00 | $57.00 | -3.4% |
| 2019-6-20 | Wells Fargo & Co | Reiterates | $60.00 | $65.00 | 8.3% |
| (in average) | $59.50 | $60.40 | 2.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
After publishing its last earnings report on March, Oracle . As soon as we get its actual EPS from the earnings report, we will extend this review.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.79 | n/a |
| 2017-Q3 | - | n/a | 0.54 | n/a |
| 2017-Q4 | 2018-03-19 | 0.72 | 0.83 | 15.3% |
| 2018-Q1 | 2018-03-19 | 0.66 | 0.75 | 13.6% |
| 2018-Q2 | 2018-06-19 | 0.87 | 0.91 | 4.6% |
| 2018-Q3 | 2018-09-17 | 0.61 | 0.62 | 1.6% |
| 2018-Q4 | 2018-12-17 | 0.7 | 0.74 | 5.7% |
| 2019-Q1 | 2019-03-14 | 0.76 | 0.78 | 2.6% |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Oracle annual revenues rose a beatiful 5.57% to $39,831.00 million dollars from $37,728.00 marked in 2017. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) collapsed a -15.14% to 9.60%. Oracle presents anual results in May, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Oracle TTM sales up to February 2019 were $39,831.00 and earnings $10,857.00 million dollars. If we compare this TTM figures with the last reported annuality, we can review Oracle business evolution since May 2018: Annual sales up to February, compared to lastest yearly report, remained steady a tight 0.00%. Regarding profit margin, Oracle climbed 17.65% to 9.60%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $37,180 M | - | $10,930 M29.4% | - |
| 2014 | $38,280 M | 2.96% | $10,960 M28.6% | 0.27% |
| 2015 | $38,226 M | -0.14% | $9,938 M26.0% | -9.32% |
| 2016 | $37,047 M | -3.08% | $8,901 M24.0% | -10.43% |
| 2017 | $37,728 M | 1.84% | $9,335 M24.7% | 4.88% |
| 2018 | $39,831 M | 5.57% | $3,825 M9.6% | -59.03% |
| TTM | $39,831 M | 0.00% | $10,857 M27.3% | 183.84% |
Quarterly financial results
Oracle reported $9,614.00 million in sales for 2019-Q1, a 0.54% improvement compared to previous quarter. Reported quarter income marked $2,745.00 million with a profit margin of 28.55%. Profit margin grew a 4.15% compared to previous quarter when profit margin was 24.40%. When comparing revenues to same quarter last year, Oracle sales marked a bad decrease and depreciated a -1.61%. Looking back to recent quarterly results, Oracle posted 2 positive quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $10,890 M | - | $3,230 M29.7% | - |
| 2017-Q3 | $9,190 M | -15.61% | $2,210 M24.0% | -31.58% |
| 2017-Q4 | $9,621 M | 4.69% | $2,233 M23.2% | 1.04% |
| 2018-Q1 | $9,771 M | 1.56% | $-4,024 M-41.2% | -280.21% |
| 2018-Q2 | $11,462 M | 17.31% | $3,514 M30.7% | -187.33% |
| 2018-Q3 | $9,193 M | -19.80% | $2,265 M24.6% | -35.54% |
| 2018-Q4 | $9,562 M | 4.01% | $2,333 M24.4% | 3.00% |
| 2019-Q1 | $9,614 M | 0.54% | $2,745 M28.6% | 17.66% |
Oracle ownership
When you are planning to invest in a stock, it's worth to overview its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Oracle, 33.39% of all outstanding shares are owned by its staff.
In case of Oracle stock, 58.60% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ORCL stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Oracle:
| ORCL | ADBE | CRM | CTXS | INTU | |
|---|---|---|---|---|---|
| Market cap | $179.5 B | $128.5 B | $0.0 M | $13.3 B | $68.3 B |
| Total shares | 3,290.0 M | 484.1 M | 0.0 M | 130.9 M | 260.1 M |
| Float shares | 2,140.0 M | 482.3 M | 0.0 M | 130.1 M | 250.8 M |
| - Institutional holdings (%) | 58.6% | 88.9% | 0.0% | 103.2% | 90.0% |
| - Insider holdings (%) | 33.4% | 0.3% | 0.0% | 1.0% | 4.0% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Oracle summary
| Friday, October 18th, 2019 | |
|---|---|
| Open | $54.95 |
| Close | $54.55 |
| Day range | $54.18 - $55.26 |
| Previous close | $55.06 |
| Session gain | -0.93% |
| Average true range | $1.11 |
| 50d mov avg | $53.61 |
| 100d mov avg | $54.62 |
| 200d mov avg | $53.21 |
| Daily pattern | |
| Weekly pattern | lt01a |
Oracle performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Oracle performance to Adobe, Salesforce.com, Citrix Systems, Intuit, Microsoft, QUALCOMM, and Symantec:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| ORCLOracle | -4.77% | 0.91% | 16.58% |
| ADBEAdobe | -13.47% | -1.87% | 8.36% |
| CRMSalesforce.com | -8.08% | -7.63% | 2.56% |
| CTXSCitrix Systems | 0.68% | 2.16% | 2.25% |
| INTUIntuit | -5.84% | 2.21% | 25.32% |
| MSFTMicrosoft | 0.91% | 12.16% | 28.44% |
| QCOMQUALCOMM | 4.39% | -1.09% | 23.62% |
| SAP | 3.61% | 15.86% | 20.07% |
| SYMCSymantec | 3.65% | -5.04% | 18.61% |
Oracle competitors
One check before investing in any stock is to review a list of its competitors, in this case for Oracle. We picked 8 companies as Oracle competitors as they are in the same industry or have similar market objectives.- Adobe (ADBE)
- Salesforce.com (CRM)
- Citrix Systems (CTXS)
- Intuit (INTU)
- Microsoft (MSFT)
- QUALCOMM (QCOM)
- (SAP)
- Symantec (SYMC)
Latest Oracle stock news
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