Oracle Shares Poised to Peak

The Street has high expectations for Oracle's(ORCL - Cramer's Take - Stockpickr) fourth-quarter earnings report, due Tuesday after the closing bell.

But analysts generally believe that the bullishness is already built into the stock.

The consensus estimate of analysts, according to Thomson First Call, projects revenue of $5.6 billion, the high end of the company's guidance of $5.4 billion to $5.6 billion for the quarter ended in May.

EPS, excluding items, is expected to be 35 cents. The company said in March that it expected to earn 34 cents a share.

Likely helping the bullishness is the handful of research notes published following the enterprise software giant's sales meeting in June, which noted uncomfirmed talk of large transactions signed in the quarter.

"They could be some of the largest deals in the company's history," said Robert Stimson, an analyst with W.R. Hambrecht.

Oracle seems to have had a solid quarter; the question is "how much has already been anticipated from the Street," Stimson added.

Indeed, the stock has risen about 15% in the last three months to $19.48 -- hitting a 52-week high of $19.96 last Wednesday.

Chatter at the company's recent sales meeting indicated a sizeable telecom deal, a financial services deal and possibly a government contract. The deals are likely multiyear, and at least one's worth is reputed to be in the $500 million range, although revenue would be deferred over the length of its contract, Stimson said.