Sensible Valuation Makes Oracle Stock Worth Owning


At first glance, the share price of enterprise software company Oracle (NYSE:ORCL) might seem rather elevated. After all, ORCL stock has moved far to the upside since March 2020.

A photo of an Oracle (ORCL stock) sign outside a building.

Source: Jer123 /

Yet there’s a lesson to be learned here. Just because a stock’s price has gone up, it doesn’t necessarily mean the stock is expensive.

If the trend is your friend, then ORCL stock is one of the friendliest assets out there. At the same time, you might be surprised to discover it’s sensibly priced. Oracle is evolving into the company it was always meant to be: a tech innovator that continues to offer outstanding value to its shareholders.

ORCL Stock at a Glance

In hindsight, it would have been great to load the boat on ORCL stock in March 2020. At the time, its shares could be bought for just $45.

It’s not likely we’ll see a price that low anytime soon. Therefore, we just have to work with what’s available — which isn’t bad at all, actually.

Momentum-focused traders certainly don’t have anything to complain about. Amazingly, ORCL stock powered its way up to $64 by the end of 2020 and then to $87 in July 2021.

Even if you prefer to invest for a steady income, Oracle should still be on your radar. The company offers a forward annual dividend yield of 1.46%, so that’s a nice bonus in addition to its steady growth.

On top of all that, ORCL stock has a trailing 12-month price-to-earnings ratio of just 19.3. So in reality, it’s a solid value — especially when skeptics might label the technology sector as overpriced.

It just goes to show that appearances can be deceiving. Sometimes, the market’s bargains can be “hidden” in plain sight.

Oracle Is Getting Into Blockchain

I mentioned earlier that Oracle is evolving. In this case, it means delving into areas that reside on the cutting edge of technology. Blockchain would certainly fit into that category. Let’s be honest: some older businesses may still be hesitant to adopt blockchain tech in 2021.

Yet Oracle is proving that it’s not afraid. The company recently announced one of its units, Oracle Financial Services Software Ltd., is working with financial technology provider Everest to bring blockchain functionality to banks.

Malta-based Everest, a licensed custodian of cryptocurrencies, has also worked on the Central Bank of Samoa’s regulatory compliance platform with the Asian Development Bank.

Because of this collaboration, “Oracle’s bank clients will be able to verify a customer’s credentials and transfer them to the blockchain platform in different countries,” according to CNBC.

Big Banks Are Taking Crypto Seriously

John Edison, vice president and global head of Financial Crime and Compliance Management Products at Oracle, further clarified the Everest collaboration’s broader value proposition.

The partnership will help financial institutions “remotely onboard customers across multiple jurisdictions, especially during the ongoing pandemic,” Edison explained.

It’s proof positive, in case anybody needed it, that Oracle remains on the cutting edge.

Everest CEO and co-founder Bob Reid noted blockchain technology has come far in terms of global adoption. “Eighteen months ago banks won’t take a call from anybody from crypto: they were scared, they were worried about compliance,” Reid commented.

Suffice to say that big banks are taking calls on crypto and blockchain now. It’s a movement that simply can’t be ignored anymore. Oracle’s partnership with Everest is a perfect example of its commitment to progress.

Oracle is reminding its stakeholders of the company’s value by moving forward with innovative technology. And for anyone worried about ORCL stock today, there’s no need to be concerned. Even after its impressive price rally, it’s still a terrific bargain.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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