Oracle Corporation (ORCL)

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Oracle: 2 Top Cloud Computing Stocks to Watch This Fall
By: Stock News | August 23, 2022

The cloud computing market has grown exponentially since the COVID-19 pandemic due to the spurring demand for cloud solutions and services to stay functional from anywhere. Businesses continue to shift their operations to cloud platforms for better efficiency.

Moreover, the advancements in cloud-based technologies should keep driving the industry’s growth. The global cloud computing market is expected to reach $947.3 billion by 2026, growing at a CAGR of 16.3%.

Given this backdrop, fundamentally sound cloud-computing stocks Oracle Corporation (ORCL) and Veeva Systems Inc. (VEEV) could be solid additions to your watchlist.

Oracle Corporation (ORCL)

ORCL provides products and services that address all aspects of corporate IT environments, including application, platform, and infrastructure worldwide. The company operates through cloud services and license support, cloud license and on-premises license, hardware, and services segments.

For the fiscal fourth quarter ended May 31, 2022, ORCL’s total revenue increased 5.5% year-over-year to $11.84 billion. The company’s non-GAAP operating income increased 2.6% year-over-year to $5.59 billion. However, its non-GAAP EPS remained flat year-over-year at $1.54.

For the first quarter ending August 31, 2022, ORCL’s EPS and revenue are expected to increase 4.6% and 17.9% year-over-year to $1.08 and $11.47 billion, respectively. It has surpassed the Street EPS estimates in three of the trailing four quarters. Over the past three months, the stock has gained 11.4% to close the last trading session at $76.46.

ORCL’s POWR Ratings reflect this promising outlook. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has a B grade for Sentiment and Quality. Within the Software – Application industry, it is ranked #12 out of 154 stocks. To see the other ratings of ORCL for Growth, Value, Momentum, and Stability, click here.

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