Oracle’s mixed financial image baffles investors

Oracle is a global leader in database management systems, cloud computing, and enterprise software. In 2023, Oracle announced its Fusion Cloud Service, a game-changing suite of applications that integrates data, analytics, and business processes across various industries.

Despite facing fierce competition from rivals SAP and Microsoft, Oracle stock prices have been on the rise since the epic rebound in September 2022, but will it continue?

Oracle technical analysis

Shares in Oracle Corporation (ORCL) have been trading in an aggressive bullish momentum for the last 5 months. The company is expected to report its earnings for the quarter on Thursday, 9 March. The consensus EPS is $0.95, compared to the result for the same quarter last year of $0.94.

Oracle’s payout ratio is around 40%, indicating that the company is assigning most of its earnings to growth investment. Notably, the company’s total liabilities are more than the total assets right now, making investors hesitant to heavily invest in the near term.

In addition, the company’s intrinsic value (what an asset is worth in a more objective calculation rather than just the share price) is around $86.40 while the share price is trading at $87.80, at the time of this report. This indicates that the share is slightly overvalued and investors might be waiting for a better price to buy the stock.

With the Stochastic oscillator not showing any overbought or oversold levels, the movement on the chart could go in either direction.

The bulls for the time being look strong with no signs of reversal yet, while the 50-day moving average and the lower band of the Bollinger bands are acting as a support on the price around the $86 price area.

With the recent addition of Oracle’s Fusion Cloud Service, a continued bullish scenario isn’t hard to imagine, but 2023 will likely have many surprises, especially for tech companies, so be sure to make your own technical analysis within an hour of trading and make sure your conclusions don’t contradict fundamental influences. 

This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.

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Author:

Paul Reid

Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.