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Barchart
Mark R. Hake, CFA

Oracle Stock Spikes on Earnings and Free Cash Flow Results, But It Could Still Be Worth 26% More

Oracle Corp (ORCL) reported strong results yesterday for its fiscal Q3 ending February. Its free cash flow (FCF) was up 68% on a trailing 12-month basis. As a result, ORCL stock is spiking today, up over 12% to $128 per share. However, based on its strong FCF the stock could still be as much as 26% undervalued.

The company reported that its cloud-based revenue was up 25% and total revenue was up 7% on a YoY basis. Moreover, the company signed several large contracts which more or less guarantees that revenue will continue to stay strong.

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