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Oracle Stock: Analyst Recommendations and Valuation


Jun. 18 2019, Updated 11:58 a.m. ET

Analyst recommendations

Of the 34 analysts covering Oracle (ORCL), ten have given the stock “buys,” while 20 analysts have given it “hold” ratings. Four analysts have given the stock “sell” ratings. Analysts have set a target price of $53.31 on the stock, which implies a potential return of 0.3% based on its closing price of $53.13 on June 17.

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Oracle’s valuation

Oracle stock is currently trading at 15.4x its fiscal 2019 estimated EPS of $3.44 and 14.1x its fiscal 2020 estimated EPS of $3.78 based on its projected growth rates of ~10.4% and ~9.8%, respectively, for those periods. However, Oracle’s revenues are expected to fall 1.42% in fiscal 2019 and rise 2.2% in fiscal 2020.

Currency headwinds are hurting both the company’s earnings and its revenue. Despite currency headwinds, Oracle’s earnings have been growing on margin improvements and share buybacks. Its consistent efforts to boost its cloud business, which has a higher margin than its hardware business, is also fueling its earnings growth.

Oracle’s fourth-quarter expectations

Oracle is set to report its fiscal 2019 fourth-quarter earnings results after the market bell on June 19. Analysts expect the company to report revenue of $10.9 billion and EPS of $1.07 in the quarter.

Oracle expects to deliver adjusted EPS in the range of $1.05–$1.09 in the fourth quarter and expects currency headwinds to dent its profits by $0.03 per share.


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