ORCL is an Industry Out-Perform

As of August 21st, 2024, Oracle with ticker ORCL trades at $140.2.

Based on comparison of the most current price action, financial statements, and Wall Street analyst forecasts, Oracle is rated as an Industry Out-Perform in Software. Our return forecast is for Oracle to outperform the market average returns by 23% in the next twelve months.

ORCL is seen as average in its industry by Wall Street analysts. ORCL’s financial and price momentum show relatively strong growth. Oracle is relatively expensive compared to its peers. It has the best quality financial statements.

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Hedgy Reports breaks down company historical and forecasted financial fundamentals to gain perspective on its Cheapness, Profitability, Sentiment, and Momentum. These four metrics are defined differently in each industry. The specific formulation of each metric is determined using Artificial Intelligence. The AI was trained using forty years of data to determine how each metrics’ formulation best predicts stock returns. For example, a dividend increase may be an important determinant of a Utilities firm’s return but a poor predictor of a technology firm’s return direction. Our Artificial Intelligence uses these four gauges to predict market-relative returns from machine learned industry-specific weightings of Cheapness, Profitability, Sentiment, and Momentum. The predictive efficacy of each gauge varies by industry. We predict Oracle will outperform market returns by 23% in the next twelve months. The bar chart below compares returns forecasts of select companies in Software.

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This Hedgy Report compares a firm to its industry peers. The report uses industry scatter charts to compare firms’ Cheapness relative to their Momentum and companies’ Profitability vs their Sentiment. Seeing the industry with these lenses uncovers interesting investment opportunities. The side panels provide time series charts of the trends in Cheapness, Momentum, Profitability, and Sentiment.

$\label{fig:industryReturns1MBarChart}Software Month on Month Returns (%)$ Software Month on Month Returns (%)

$\label{fig:industryReturns12MBarChart}Software Year on Year Returns (%)$ Software Year on Year Returns (%)

In its industry, Oracle was an average performer over the prior month. ORCL was an average performer over the past twelve months compared to peers.

$\label{fig:tsX1} Momentum Percentile history$ Momentum Percentile history

$\label{fig:tsY1} Cheapness Percentile history$ Cheapness Percentile history

Oracle is a firm with relatively strong growth in its financials based on its Momentum Percentile and relatively expensive when measured by its Cheapness Percentile relative to similar Software companies. The stock looks expensive. The market is pricing in strong profits on an industry-relative basis. Its Momentum Percentile is improving compared to prior levels. Its Cheapness Percentile is the lowest its been. The Cheapness vs Momentum scatter chart has the best companies in the top-right quadrant. The worst companies are in the bottom-left quadrant. The top-right contains firms that are cheaper and demonstrated stronger momentum. They are most desirable. The bottom-left space displays expensive firms with poor momentum. Machine learning methods suggest that the top-right firms outperform the bottom-left firms.

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$\label{fig:tsX2} Sentiment Percentile history$ Sentiment Percentile history

$\label{fig:tsY2} Profitability Percentile history$ Profitability Percentile history

Oracle is seen as average in its industry by Wall Street analysts based on its Sentiment Percentile and of the best quality when measured by its Profitability Percentile relative to similar Software companies. This combination typically presents a great buying opportunity because the stock has quality financials and Wall Street analysts are strongly bullish. Its Sentiment Percentile looks similar to its historical levels. Its Profitability Percentile is improving compared to prior levels. The Profitability vs Sentiment scatter chart has the best companies in the top-right quadrant. The worst companies are in the bottom-left quadrant. The top-right shows firms with the best profitability and the strongest analyst sentiment. They are the most desirable. The bottom-left space has the least profitable firms with the worst market sentiment. The top-right firms typically outperform the bottom-left firms.

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Hedgy Analytics uses artificial intelligence to provide stock reports on most US stocks. You can screen stocks by Sentiment, Profitability, Momentum, and Cheapness across all industries with a visual interactive screener here.

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