Oracle (ORCL, $57.01) beats Q1 earnings estimates

Oracle reported fiscal first quarter earnings that beat analysts; expectations.

The software/cloud giant’s  adjusted earnings came in at 93 cents a share, compared to the 86 cents a share estimated by analysts polled by Refinitiv.

Revenue increased +2% year-over-year to  $9.37 billion, surpassing the $9.19 billion expected by analysts.

Q1 revenue from cloud services and license support grew +2%.

The company’s Fusion Cloud ERP Suite grew +33% year-over-year. Netsuite ERP expanded +23%.

Tickeron's analysis: 

ORCL in upward trend: price rose above 50-day moving average on September 09, 2020

ORCL moved above its 50-day Moving Average on September 09, 2020 date and that indicates a change from a downward trend to an upward trend. In 31 of 46 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 67%.

Current price $57.01 is above $56.33 the highest resistance line found by A.I. Throughout the month of 08/10/20 - 09/10/20, the price experienced a +4% Uptrend, while the week of 09/02/20 - 09/10/20 shows a -3% Downtrend.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 31 of 57 cases where ORCL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 81%.

The 10-day Moving Average for ORCL crossed bullishly above the 50-day moving average on August 26, 2020. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 42%.

Following a +3.63% 3-day Advance, the price is estimated to grow further. Considering data from situations where ORCL advanced for three days, in 162 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 49%.

Bearish Trend Analysis

The 10-day RSI Indicator for ORCL moved out of overbought territory on September 03, 2020. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In 10 of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at 37%.

The Momentum Indicator moved below the 0 level on September 10, 2020. You may want to consider selling the stock, shorting the stock, or exploring put options on ORCL as a result. In 35 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 41%.

The Moving Average Convergence Divergence Histogram (MACD) for ORCL turned negative on September 08, 2020. 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 39 similar instances when the indicator turned negative. In 16 of the 39 cases the stock turned lower in the days that followed. This puts the odds of success at 41%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 35%.

ORCL broke above its upper Bollinger Band on August 26, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for ORCL entered a downward trend on August 19, 2020. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 77%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.03.

The Tickeron SMR rating for this company is 8 (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 Valuation Rating of 9 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (14.56) is normal, around the industry mean (13.01). P/E Ratio (18.54) is within average values for comparable stocks, (281.78). Projected Growth (PEG Ratio) (6.68) is also within normal values, averaging (7.14). ORCL has a moderately high Dividend Yield (1.79) as compared to the industry average of (0.33). P/S Ratio (4.35) is also within normal values, averaging (16.11).

The Tickeron Profit vs. Risk Rating rating for this company is 33 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 34 (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 PE Growth Rating for this company is 58 (best 1 - 100 worst), pointing to consistent 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.