Oracle Corporation (ORCL) Down In Post-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 or Stephanie Link.

Trade-Ideas LLC identified Oracle Corporation ( ORCL) as a post-market laggard 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 $539.0 million.
  • ORCL is down 4.5% today from today'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 1.2%. ORCL has a PE ratio of 17.1. Currently there are 15 analysts that rate Oracle Corporation a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Oracle Corporation has been 12.0 million shares per day over the past 30 days. Oracle has a market cap of $181.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.03 and a short float of 1% with 2.73 days to cover. Shares are up 7.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Oracle Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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 11.9%. Since the same quarter one year prior, revenues slightly increased by 3.4%. 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 ($3.15 versus $2.39).
  • The gross profit margin for ORACLE CORP is currently very high, coming in at 81.88%. Regardless of ORCL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ORCL's net profit margin of 32.20% significantly outperformed against the industry.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite 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.

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