OFSS 11900 PE Recommended above 315, Sl 293, Trgt 352.
Oracle Corporation’s ( NYSE: ORCL) stock has been on a remarkable run, surging over 15% in the past three trading days and reaching an all-time high. The tech giant’s impressive performance can be attributed to its strong first-quarter earnings, upbeat revenue forecast, and strategic partnerships that are fueling its cloud and AI growth.
Oracle has revised its revenue forecast for fiscal 2026, now expecting at least $66 billion, around $1.5 billion more than analysts had anticipated. The company also projected revenues exceeding $104 billion for the 2029 fiscal year, along with an anticipated year-over-year increase in earnings per share of 20%.
Despite being a late entrant to the cloud business, Oracle’s rapid AI investments have made its software an attractive option for companies looking to streamline operations. Revenue from its cloud products, seen as a less expensive option compared to Microsoft and Amazon, rose 21% to $5.6 billion in the first quarter, while its overall revenue of $13.31 billion beat estimates. Oracle is partnering with rival cloud service providers to make it simpler for customers to connect their data across vendors. The company recently announced a tie-up with Amazon Web Services, after having signed a similar deal with Alphabet’s Google Cloud in June.
Analysis
Oracle Finl. The service stock price today is Rs 11,020.50. Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyze Oracle Finl. Service.
- PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Oracle Finl. Service has a PE ratio of 32which is high and comparatively overvalued.
- Return on Assets (ROA): – Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Oracle Finl. Service has an ROA of 51% which is a good sign for future performance. (higher values are always desirable)
- Current ratio: – The current ratio measures a company’s ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company can be stable to unexpected bumps in business and economy. Oracle Finl. Service has a Current ratio of 37.
- Return on equity: – ROE measures the ability of a firm to generate profits from its shareholders’ investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Oracle Finl. Service has a ROE of 07% .(higher is better)
- Debt to equity ratio: – It is a good metric to check out the capital structure along with its performance. Oracle Finl. Service has a Debt to Equity ratio of 0which means that the company has a low proportion of debt in its capital.
- Sales growth: – Oracle Finl. Service has reported revenue growth of 43% which is poor about its growth and performance.
- Operating Margin: – This will tell you about the operational efficiency of the company. The operating margin of Oracle Finl. Service for the current financial year is 13%.
- Dividend Yield: – It tells us how much dividend we will receive about the price of the stock. The current year dividend for Oracle Finl. Service is Rs240 and the yield is 18 %.
- Earnings Per Share: – It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Oracle Finl. Service is Rs16. The higher the EPS, the better it is for investors.
Yesterday, the stock closed near its low after making a life high of 12619, and negative bias was confirmed. It plotted an inverted hammer candle and hence looked for negative momentum today. The stock opened with negative bias and ATM Put Option was recommended after stock breaches ORB.
