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Headquartered in Austin, Texas, Oracle Corporation (ORCL) is a global leader in cloud computing and enterprise software solutions. With a market cap of $524.1 billion, Oracle drives digital transformation for businesses worldwide, offering an extensive suite of products and services that span database management, cloud applications, and infrastructure.
ORCL stock has significantly outperformed the broader market over the past year. The stock has returned 67.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.5%. In 2024 alone, ORCL stock is up 79.8%, while the SPX is up 25.5% on a YTD basis.
Zooming in further, ORCL has outperformed the Technology Select Sector SPDR Fund (XLK). The stock has outshined the exchange-traded fund’s 31.6% returns over the past 52 weeks and 22.7% on a YTD basis.
Shares of Oracle have surged 21% in September following a strong Q1 earnings report on Sep. 9, which led to an 11.4% gain in the next trading session. The company posted robust results, with total revenues up 6.9% year-over-year to $13.3 billion, primarily driven by a 45% increase in cloud infrastructure revenue and solid SaaS growth.
Oracle’s strategic expansion of its cloud data centers and substantial new GPU contracts are well-timed with rising AI demand, reinforcing its position in the cloud market. Also, its non-GAAP earnings per share increased by 17% year over year to $1.39, exceeding analyst expectations.
For the current fiscal year, ending in May 2025, analysts expect Oracle’s EPS to grow 8.2% to $5 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 30 analysts covering ORCL stock, the consensus rating is a “Moderate Buy.” That’s based on 18 “Strong Buy” ratings and 12 “Holds.”
This configuration is more bullish than three months ago when 17 analysts suggested a "Strong Buy."
However, on Oct. 27, Rishi Jaluria from RBC Capital maintained a “Hold” rating on Oracle, with a price target of $165, implying that the stock trades at a premium.
While ORCL is currently trading at a premium to the mean price target of $179.53, the Street-high price target of $210 suggests a 10.8% upside potential.
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.
