Oracle Corporation Stock Buy Recommendation Reiterated (ORCL)

NEW YORK (TheStreet) -- Oracle Corporation (Nasdaq:ORCL) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from the ratings report include:

• ORACLE CORP has improved earnings per share by 11.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ORACLE CORP increased its bottom line by earning $1.97 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($2.66 versus $1.97).
• The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 7.6% when compared to the same quarter one year prior, going from $3,209.00 million to $3,452.00 million.
• Despite its growing revenue, the company underperformed as compared with the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, ORACLE CORP's return on equity exceeds that of both the industry average and the S&P 500.

Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. The company has a P/E ratio of 14.5, above the average computer software & services industry P/E ratio of 14.1and below the S&P 500 P/E ratio of 17.7. Oracle has a market cap of $137.41 billion and is part of the technology sector and computer software & services industry. Shares are up 8.5% year to date as of the close of trading on Tuesday.

You can view the full Oracle Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

For more information on Oracle Corporation click any of the following:

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• Oracle Corporation Earnings

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• Oracle Corporation Growth Rates

• Oracle Corporation Balance Sheet

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• Oracle Corporation Income Statement