In a world where Amazon seems untouchable, any news of a company stealing their customers is sure to make waves. And that’s exactly what appears to be on the horizon – as Oracle executives claim that there will be shocking brands switching over to their OCI (Oracle Cloud Infrastructure) from Amazon’s AWS. This would be huge news for a company that’s down 25% over the past year – and as such, has investors perked up eager to learn more.
Since 1977, Oracle has been a mainstay in the ERP industry. Their offerings help enterprise-level businesses organize accounting, project management, compliance, supply chain operations, and a whole lot more. Despite their late jump over to the cloud transition from their on-site servers, they still maintain a firm grasp of the market share. While they were certainly not the first to navigate to a cloud-based ERP provider, they have a USP in that they are the only cloud player to offer both the ERP software application and infrastructure – all in one.
But, what we’re mainly here to discuss today is the fact that Oracle could be stealing huge companies away from Amazon’s AWS offering. Big enough that the company’s founder and chairman doubled back on his comments. In a recent press conference he teased that “next quarter, we’ll be announcing some brands and companies moving off of Amazon to OCI (Oracle Cloud Infrastructure) that will shock you.” That wasn’t all, though. He said it once more towards the end of the call for those who may not have understood the gravity of what was to come: “So again, I’m going to repeat, we’re talking to the most famous brands that are running at Amazon, and some of them are going to be moving very soon.”
Considering the cloud market as a whole is primed to grow almost 20% over the next 5 years, getting into Oracle stock now – while it sits at its lowest point in the last year – could prove to be a bargain. So – should you buy Oracle stock now? Fortunately, you won’t have to play the guessing game or buy based on emotion. With VectorVest’s intuitive stock analysis system, we can take a look at Oracle stock through tried-and-true stock analysis. This will give you a clear buy, sell, or hold recommendation for the company.
Oracle’s Upside Potential & Safety are Fair – but the Timing isn’t Quite Right
VectorVest simplifies investing by boiling down everything you need to know about a stock into three simple ratings: Relative Value (RV), Relative Safety (RS), and Relative Timing (RT). These ratings sit on a scale of 0.00-2.00 – the closer to the high-end of that range a stock performs, the better. And based on the overall VST rating of a stock, VectorVest provides a clear buy, sell, or hold recommendation. And there’s just one issue with Oracle right now – the timing.
- Fair Upside Potential: this indicator is far superior to a simple price comparison of price and value. That’s because it’s calculated from an analysis of projected price appreciation three years out, AAA corporate bond rates, risk, and other relevant factors. As for ORCL, the RV rating of 1.00 is right at the average.
- Fair Safety: similarly, ORCL has an RS of 1.00 – which is fair on a scale of 0.00-2.00. This rating is computed from a deep analysis of the company’s financial consistency and predictability, debt-to-equity ratio, business longevity, and more.
- Poor Timing: the main issue with ORCL stock right now is the poor RT rating of 0.75 – which is poor on a scale of 0.00-2.00. This rating comes from an analysis of the direction, magnitude, and dynamics of a stock’s price movement in both the short, medium, and long term. As for ORCL, this tells us the stock is in a down trend.
All things considered, ORCL has a VST rating of 0.91 – which is slightly below average. But does that mean it’s time to sell if you’re holding the stock right now? OR, should you continue holding to benefit from the news Ellison released? To get a definitive answer on what your next steps should be, you can analyze ORCL stock free here.
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VectorVest advocates buying safe, undervalued stocks, rising in price. As for ORCL, it has fair upside potential and safety. However, it does have a negative price trend.
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