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Austin, Texas-based Oracle Corporation (ORCL) is a leading global technology company renowned for its comprehensive suite of enterprise software solutions, cloud infrastructure services, and database management systems. Valued at $337.05 billion by market cap, Oracle is a powerhouse in the tech industry. Competing fiercely with other tech giants, Oracle's main rivals include Microsoft (MSFT), known for its diverse software products and cloud services.
Companies worth $200 billion or more are generally described as "mega-cap stocks," and Oracle certainly fits that description. Oracle is a technology leader that dominates the enterprise software and cloud services markets with strong portfolios, customer loyalty, and recurring revenue, leveraging innovative cloud technology for long-term growth.
Shares of Oracle have dropped 7% from their 52-week high of $132.77, reached on Mar. 21. However, over the past three months, ORCL's shares have gained 10%, outperforming the broader Nasdaq Composite ($NASX), which gained 7.1% during the same period.
Longer term, ORCL is up 17.1% on a YTD basis, and the shares are now holding onto a gain of 15.3% over the past 52 weeks. In comparison, the Nasdaq is up 14.4% in 2024 and 29.4% over the past year.
To confirm the recent bullish price trend, ORCL has been trading above its 200-day moving average since late April and above its 50-day moving average since early June.
Oracle (ORCL) rose more than 3% on May 14 after the Information reported that the company is close to signing a $10 billion cloud contract with xAI. This potential partnership underscored Oracle's strong position in the cloud infrastructure market and its growing involvement in AI technology, boosting investor confidence.
Earlier, on March 11, Oracle shares jumped 14% after the company announced robust Q3 results and provided optimistic guidance for the upcoming quarter. The company's adjusted EPS of $1.41 beat the consensus estimate of $1.38, and revenue of $13.28 billion was slightly below analyst expectations of $13.30 billion. Oracle expects earnings between $1.62 and $1.66 in Q4, as well as revenue growth of 4% to 6%.
To emphasize the stock’s overall outperformance, Microsoft has underperformed - not just ORCL but also Nasdaq. MSFT stock has gained 12.9% on a YTD basis.
Given its impressive price performance, analysts are optimistic about ORCL's prospects. The stock has a consensus rating of "Moderate Buy" from 29 analysts in coverage. The mean price target of $136.39 reflects an 10.4% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
