Oracle Corporation (ORCL) Off To A Strong Start In Pre-Market Activity
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Oracle Corporation as such a stock due to the following factors:
- ORCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $821.1 million.
- ORCL traded 17,386 shares today in the pre-market hours as of 9:28 AM.
- ORCL is up 2.1% today from yesterday's close.
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More details on ORCL:
Oracle Corporation develops, manufactures, markets, hosts, and supports database and middleware software, application software, cloud infrastructure, hardware systems, and related services worldwide. The stock currently has a dividend yield of 1.4%. ORCL has a PE ratio of 18.0. Currently there are 14 analysts that rate Oracle Corporation a buy, 2 analysts rate it a sell, and 10 rate it a hold.
The average volume for Oracle Corporation has been 14.2 million shares per day over the past 30 days. Oracle has a market cap of $187.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.20 and a short float of 0.9% with 1.57 days to cover. Shares are down 4.4% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Oracle Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.0%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- ORACLE CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ORACLE CORP increased its bottom line by earning $2.39 versus $2.26 in the prior year. This year, the market expects an improvement in earnings ($2.86 versus $2.39).
- ORCL's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.48 is very high and demonstrates very strong liquidity.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Oracle Corporation Ratings Report.
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