Oracle Corp (ORCL, $86.91) after its earning report on March 09, 2023
Oracle Corporation is a multinational technology company that specializes in developing and selling computer software, hardware, and cloud services. The company recently released its earnings report for the quarter, which ended on February 28th, 2023. However, the company's stock price has since moved below its 50-day moving average on March 09, 2023, indicating a change from an upward trend to a downward trend. In 23 of 42 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 55%.
The earnings report showed that Oracle's revenue for the quarter was $11.2 billion, up 5% from the same quarter last year. However, the company missed analysts' expectations, which were set at $11.3 billion. The company's earnings per share (EPS) for the quarter were $1.16, up 11% from the same quarter last year but also fell short of analysts' expectations of $1.18. Oracle's cloud services and license support revenues, which account for a significant portion of its total revenue, grew by 4% to $7.4 billion.
Despite the company's revenue growth, its stock price has experienced a downward trend. Oracle's stock price has fallen below its 50-day moving average, indicating a shift from an upward trend to a downward trend. This shift in trend could be due to a variety of factors, such as the missed revenue and EPS expectations or concerns about the company's ability to compete in the rapidly evolving cloud services market.
Investors should take note of the historical trends when the stock price moves below its 50-day moving average. In 23 of 42 similar past instances, the stock price decreased further within the following month. This suggests that there is a 55% chance of a continued downward trend in the stock price in the coming weeks.
However, investors should also consider the long-term outlook for Oracle. The company has a strong track record of innovation and has made significant investments in cloud services in recent years. Oracle's cloud services and license support revenues continue to grow, indicating that the company is well-positioned to capitalize on the ongoing shift to cloud computing.
Oracle's earnings report showed revenue growth, but the company missed analysts' expectations. Additionally, the stock price has moved below its 50-day moving average, indicating a change from an upward trend to a downward trend. Investors should take note of historical trends and the potential for a continued downward trend in the stock price in the coming weeks.
ORCL's RSI Indicator ascending out of oversold territory
The RSI Oscillator for ORCL moved out of oversold territory on December 19, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In of the 22 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ORCL advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .
ORCL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 335 cases where ORCL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 27, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on ORCL as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ORCL turned negative on November 26, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
ORCL moved below its 50-day moving average on December 10, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ORCL crossed bearishly below the 50-day moving average on December 18, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ORCL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ORCL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (61.350) is normal, around the industry mean (31.078). P/E Ratio (33.108) is within average values for comparable stocks, (160.694). Projected Growth (PEG Ratio) (1.057) is also within normal values, averaging (2.755). Dividend Yield (0.013) settles around the average of (0.084) among similar stocks. P/S Ratio (6.720) is also within normal values, averaging (58.228).
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a developer of a diversified line of business software products
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