Shares of Oracle (ORCL) have climbed more than 57% through 2024 thus far, and they’re up more than 20% in the past month alone. The stock has been on a tear, but investors think it still has plenty of room to go.
The recent 5-day rally showed 22% growth, making it the stock’s best stretch in more than 23 years. Yet, Melius Research analyst Ben Reitzes has recently upgraded the stock – suggesting it’s far from finished.
This comes after an impressive fiscal first quarter in which Oracle showed accelerated revenue growth coupled with an optimistic long-term outlook. His previous price target for ORCL was $155, but it has been bumped to $210.
Reitzes says that he recognizes why some may see this move and think he’s late to the party. But, he believes this is the middle of a larger move we’re witnessing.
The company’s multi-cloud partnerships with important players in the industry have it well-positioned, and its founder’s reputation as a well-revered individual doesn’t hurt either.
Oracle was brought to life by Larry Ellison more than 45 years ago, and he’s still around today serving as a guiding force and a persuasive tech leader. Reitzes says Ellison’s reach has the ability to get the GPUs it needs, partnerships with leading cloud CEOs, and more.
Reitzes went on to reference the massive Amazon deals we’ve seen Oracle make as another potentiator for continued growth.
While he was previously worried about its aggressive spending, that’s less of a concern now as the company has shown it can outpace its costs with increased income.
Earnings per share of $8.50 within the next two years would not surprise Reitzes, and it’s why he believes the company is capable of a 25x multiple, outpacing the likes of Salesforce and Adobe.
So, is now really a good time to buy ORCL? We’ve taken a closer look at this opportunity in the VectorVest stock software and found 3 things to help you make your next move.
ORCL Has Good Upside Potential and Safety With Very Good Timing
VectorVest is a proprietary stock rating system that delivers clear, actionable insights in just 3 simple ratings - empowering you to win more trades with less work and stress.
These are relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation.
It gets even easier though, as you’re also given a buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. Here’s what we found for ORCL:
- Good Upside Potential: The RV rating is a far superior indicator to the typical comparison of price to value alone because it compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. ORCL has a good RV rating of 1.17.
- Good Safety: The RS rating assesses a stock’s risk profile. It’s based on the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. ORCL has a good RS rating of 1.24.
- Very Good Timing: The RT rating is a trend indicator derived from the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year to offer the full picture for investors. ORCL has a very good RT rating of 1.31.
The overall VST rating of 1.25 is very good for ORCL and enough to earn the stock a BUY recommendation. But, don’t go into this trade blind - take a closer look at this opportunity with a free stock analysis so you can fully capitalize on ORCL!
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VectorVest advocates buying safe, undervalued stocks, rising in price. ORCL has been on an impressive pace in both the short and long term, and experts believe this trend will only continue going forward. The stock has good upside potential and safety with very good timing.
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