• Oracle (ORCL) shows strong technical momentum, hitting new 52-week highs as recently as July 31.
• ORCL maintains a 100% “Buy” opinion from Barchart indicators.
• Fundamentals are robust, with double-digit revenue and earnings growth projected for the next two years and a $718 billion market cap.
• Analyst sentiment is overwhelmingly bullish, with most major firms rating Oracle a “Buy” and price targets above current levels.

Today’s Featured Stock

Valued at $718 billion, Oracle (ORCL) is one of the largest enterprise-grade database, middleware, and application software providers. Oracle has expanded its cloud computing operations over the last couple of years. The company offers cloud solutions and services that can be used to build and manage various cloud deployment models. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ORCL checks those boxes. Since the Trend Seeker signaled a buy on May 12, the stock has gained 63.1%.

ORCL Price vs. Daily Moving Averages:

Barchart Technical Indicators for Oracle

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Oracle shares hit a new 52-week high on July 31, touching $260.87 in intraday trading and closed Wednesday, Aug. 6 within 1.7% of that high.

• Oracle has a Weighted Alpha of +98.97.
• ORCL has an 100% “Buy” opinion from Barchart.
• The stock has gained 100.01% over the past year.
• ORCL has its Trend Seeker “Buy” signal intact.
• Oracle is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 5 new highs and gained 8.05% in the last month.
• Relative Strength Index (RSI) is at 68.52%.
• There’s a technical support level around $253.15.

Don’t Forget the Fundamentals

• $718 billion market capitalization.
• 51.96x trailing price-earnings ratio.
• 0.78% dividend yield.
• Revenue is projected to grow 16.29% this year and another 19.62% next year.
• Earnings are estimated to increase 12.50% this year and an additional 20.75% next year.

Analyst and Investor Sentiment on Oracle

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish on ORCL, and so are most major advisory sites.

• The Wall Street analysts tracked by Barchart have issued 25 “Strong Buy,” 1 “Moderate Buy,” and 10 “Hold,” opinions on the stock.
• Value Line gives the company its above-average rating and has a price target of $304.
• CFRA’s Market Scope rates the stock a “4 Star Buy.”
• Morningstar thinks the stock is overly valued by 24% with a fair value of $205.
• 200,520 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on Oracle

ORCL currently has momentum and is hitting new highs. Many investors and analysts think the double-digit projections of revenue and earnings growth will continue.

I caution that ORCL is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.