Oracle Stock: Analysts’ Ratings, Market Cap, and Valuation



Analysts’ recommendations

Of the 33 analysts covering Oracle (ORCL), eight have given the stock “buy” ratings, while 21 have given it “holds.” Four analysts have given the stock “sell” ratings. Analysts have a consensus target price of $55.84 on the stock, which implies a potential downside of 1.6% based on its closing price of $56.77 on June 27.

In the software industry, Oracle’s market cap stands at $188.5 billion. Symantec (SYMC) and IBM (IBM) have market caps of $13.2 billion and $122.8 billion, respectively, as of June 27. Microsoft (MSFT) crossed the $1 trillion milestone in April and had touched $1.02 trillion as of June 27.

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Oracle’s valuation

Oracle stock is currently trading at 14.6x its fiscal 2020 estimated EPS of $3.88 and 13.6x its fiscal 2021 estimated EPS of $4.17 based on its projected earnings growth rates of ~10.2% and ~7.4%, respectively, in those periods. However, Oracle’s revenues are expected to rise 2.46% in fiscal 2020 and 2.85% in fiscal 2021.

In comparison, the shares of Symantec, Microsoft, and IBM are trading at forward PE multiples of 11.7x, 26.1x, and 9.78x, respectively.


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