Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Oracle (ORCL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
ServiceNow NOW and Oracle ORCL are helping enterprises in digital transformation through their respective cloud-supported solutions. Digital transformation offers a massive growth opportunity, driven by the growing adoption of cloud computing and artificial intelligence (AI).
Oracle's strength lies in its legacy database business, benefiting from high switching costs and multi-cloud integration despite competitive pressures from hyperscalers and cloud-native competitors. Recent earnings showed a 6% revenue growth to $14.13 billion, with core EPS missing estimates slightly. But operating margins improved to 30.8%. Oracle's push toward AI and cloud services justifies its higher valuation, with EBITDA expected to grow 16.2% annually and significant free cash flow growth anticipated from FY25 to FY27.
In the most recent trading session, Oracle (ORCL) closed at $149.29, indicating a -0.96% shift from the previous trading day.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Oracle (ORCL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Oracle (ORCL) reachead $128.62 at the closing of the latest trading day, reflecting a -0.88% change compared to its last close.
Oracle's reaffirmed FY26 target and new FY27 guide signal strong growth potential, with a 20% revenue growth outlook for FY27 being particularly bullish. Record RPO build and significant backlog growth indicate positive momentum, despite near-term data center bottlenecks delaying revenue conversion. Oracle Cloud Infrastructure's capabilities and multi-cloud traction are driving large AI deals and enterprise growth, enhancing the company's competitive edge.
Oracle's much-needed correction is finally here, bringing the stock back to earth after the Stargate-induced rally and the market's over-exuberance surrounding the AI boom. With ORCL stock now trading (somewhat) nearer to historical trends and its peers, its high-growth investment thesis is more compelling as the management guides double digits cloud growth opportunities. Readers must note the robust tailwinds arising from the Stargate project from H2'26 onwards, with it triggering an accelerated growth profile in the second half of the decade.
Oracle Corporation (ORCL) is undervalued, despite strong financials, strategic investments in AI, and cloud growth, making it a compelling investment opportunity. ORCL's financial dominance includes $472.64 billion in revenue and $120.78 billion in free cash flow since 2015, with robust shareholder returns. ORCL faces competition from tech giants but has unique strengths in cloud and AI, positioning it for future growth and market share gains.
Analysts at Evercore ISI highlighted names like Microsoft NASDAQ: MSFT and Salesforce NYSE: CRM as most resilient in the face of potential spending slowdowns, listing Oracle NYSE: ORCL among those most exposed.