The Buy recommendation for Oracle Corporation (NYSE:ORCL) is based in part on a mathematical computation of risk/reward that is much better than average, analytical scoring that is near average, and a ranking in the company's sector group that is in the top half, and a ranking in its industry group that is in the top half. The company's Buy recommendation stands out more as a result of being in a sector and an industry group that are ranked below average in attractiveness. ORCL is rated as a Buy by means of the Portfolio Grader stock evaluator. The approach to investing incorporated in this analytical tool researches and ranks nearly 5,000 stocks each week from a fundamental and quantitative perspective. This represents no change from the previous week and is the same ranking ORCL has had from Portfolio Grader for the last month.
ORCL is a component of the 82 company Packaged Software GICS industry group, which is part of the 326 company GICS Technology Services sector. The market value of ORCL is $218.5 billion which places it in the top 10% of its industry group Portfolio Grader's current ranking for ORCL puts it 34 among the 82 companies in this industry group, putting it in the second quartile.
Currently, Portfolio Grader ranks the Technology Services sector number 2 among the 20 sectors in its universe putting it in the top quartile of all the GICS sectors. The Packaged Software industry group is ranked 37 among the 129 industry groups within the GICS sectors, placing it near the average in terms of the Proprietary Quantitative Score scoring system.
Oracle has realized above-average scores in 2 of the 8 fundamental areas appraised by Portfolio Grader and average or below-average grades in 6 of the areas used in the ranking of company stocks.
The company's operational scores provide mixed results with rankings for sales growth and earnings growth that are below average, while the score for operating margin is above average. Scores for visibility of earnings are worse than the industry norms for earnings revisions, earnings surprises, and earnings momentum. ORCL's ranking for return on equity is strikingly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Oracle places in the third quartile of the industry group.
Portfolio Grader quantitatively views ORCL's shares using the Proprietary Quantitative Score. This metric looks at ORCL's shares from the perspective of risk/reward. This unique scoring approach balances the relative value of the company's shares based on the recent $50.96 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, ORCL currently scores above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.
