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Austin, Texas-based Oracle Corporation (ORCL) is a global leader in enterprise information technology solutions. Valued at a market cap of $675 billion, the company provides a broad portfolio of cloud services, software licenses, hardware, support, and consulting services to businesses in various industries, government agencies, and educational institutions.
Companies valued at $200 billion or more are typically classified as “mega-cap stocks,” and Oracle fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software - infrastructure industry. The company's specialty is providing integrated, end-to-end solutions across cloud infrastructure (OCI), enterprise applications, and database management, enabling businesses to modernize and scale their IT systems.
This information technology giant is currently trading 7.9% below its 52-week high of $260.87, reached on Jul. 31. ORCL has rallied 46.7% over the past three months, considerably outpacing the Nasdaq Composite’s ($NASX) 13.6% return during the same time frame.
In the longer term, Oracle has soared 74.3% over the past 52 weeks, considerably outperforming NASX’s 23.6% uptick over the same time period. Moreover, on a YTD basis, shares of ORCL are up 44.2%, compared to NASX’s 12.4% surge.
To confirm its bullish trend, ORCL has been trading above its 200-day moving average since late May, and has remained above its 50-day moving average since early May.
On Jun. 11, Oracle delivered strong Q4 results, prompting its share price to surge 13.3% in the following trading session. The company’s core cloud services and license support revenue grew by 14.3% year-over-year, while its cloud license and on-premise license sales increased by 9.2% from the year-ago quarter. This contributed to an 11.3% year-over-year rise in its overall revenue to $15.9 billion, which topped the consensus estimates by 2.3%. Moreover, its adjusted EPS of $1.70 improved 4.3% from the year-ago quarter, surpassing analyst expectations by 3.7%.
Oracle has also outperformed its rival, Microsoft Corporation (MSFT), which gained 24.1% over the past 52 weeks and 20.9% on a YTD basis.
Given Oracle’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 37 analysts covering it, and the mean price target of $251.97 suggests a 4.8% premium to its current price levels.
