Oracle Corporation (NYSE: ORCL) is a database company selling enterprise resource planning (ERP) software to businesses worldwide. Oracle, founded in 1977, was the first commercial SQL-based relational database management system. Oracle now has 430,000 clients in 175 countries, with 136,000 people serving them.
Full Year FY22 Results: (Year Ended May 31, 2022)
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Source: Analysis by Kalkine Group)
Oracle continued to improve its top line results again in Q4FY22 growing 10% in constant currency. These consistent increases in their quarterly revenue growth rate typically have been driven by their market leading Fusion and NetSuite cloud applications. But in the quarter just gone by, the company also experienced a major increase in demand in their infrastructure cloud business—which grew 39% in constant currency. It also seems that this revenue growth spike indicates that their infrastructure business has now entered a hyper-growth phase. Couple a high growth rate in their cloud infrastructure business with the newly acquired Cerner applications business—and Oracle finds itself in position to deliver stellar revenue growth over the next several quarters
Considering the company’s strong fundamentals, Strong margin profile, Strong liquidity, associated risks, and current valuation. We recommend a “Buy" rating on the stock at the current market price of USD 68.50 as of June 16, 2022, at 10:29 AM PDT.
1-year technical chart as of June 16, 2022, at 10:29 AM PDT, Source: REFINITIV. Analysis by Kalkine group
Technical Summary Analysis
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
Note 3: The report publishing date is as per the Pacific Time Zone.