It sells database software, cloud computing systems, and enterprise software products. Oracle ORCL is an American multinational technology corporation. It was rumored that a director within Oracle purchased 15,000 shares for approximately $83 per share around the beginning of February.
Why is an excellent stock
In its recent earnings call, Oracle stated that its strong recovery was due to the increased adoption of its cloud-based services, including Oracle Cloud Infrastructure, Fusion ERP, and NetSuite ERP.
According to its fiscal 2022 earnings report, its cloud services and license support revenue of $30.2 billion represented 71% of its top line, an increase of 6% over fiscal 2021.
The company’s higher-growth cloud services revenue in 2022 reached $10.8 billion, up 22%. As a constant currency segment (excluding Cerner), it expects organic growth of about 30% in fiscal 2023.
As a result of today’s exchange rates, Oracle expects total revenue, including Cerner, to rise between 20% and 22% in constant currency terms in the first quarter of 2023. Oracle is expected to grow its revenue and GAAP earnings (including Cerner) by 18% and 63% for the entire year.
At 18 times forward earnings, the stock pays a dividend yield of 1.8% on those earnings, a reasonable valuation.
In these turbulent times, you should own defensive stocks like Oracle. Oracle might seem dull to growth-oriented investors, but it makes a tremendous defensive investment.
Reason to avoid
A large part of Digital Realty stock has fallen recently has been the general drop in tech stocks. But REITs are also concerned about competition from significant customers, including Microsoft, Amazon, Oracle, and Alphabet’s Google.
Digital Realty recently announced a partnership with Oracle to host the second Oracle “cloud region” in Paris at the Interxion Paris Digital Park. So, it might confuse traders to invest in this stock or not.
Technical analysis
Currently, Oracle shares are trading at 77.84, while the 8-day simple moving average for ORCL is 75.21, indicating a Buy signal. Today, ORCL stock is trading at 77.84, while Oracle’s 20-day SMA is 72.73, indicating a buy.
Bottom line
In 2022, buyers seem to have abandoned the market amid a sea of red. Traders are still buying, which is undoubtedly a positive sign. Seeing a trader buy a stock is always a good sign. Generally, it indicates that they are bullish about the company, signaling that they hope the stock will increase.
