Shares in Oracle Corporation (symbol ‘ORCL’) have been trading in an aggressive bullish momentum for the last 5 months. The company is expected to report its earnings for the quarter on Thursday 9th of March. The consensus EPS is $0.95 compared to the result for the same quarter last year of $0,94.
‘Oracle’s payout ratio is around 40% indicating that the company is saving up most of their earnings for reinvestment in the company to influence growth while at the same time the company’s total liabilities are more than the total assets making investors hesitant to heavily invest in the near term. In addition the company’s intrinsic value ( what an asset is worth in a more objective calculation rather than just the share price) is around $86,40 while the share price is trading at $87,80 at the time of this report. This indicates that the share is slightly overvalued and investors might be waiting for a better price to buy the stock.’ said Antreas Themistokleous, an analyst at Exness.
On the technical side the price has been trading in an aggressive upward movement for the last 5 months and currently the price entered a descending trading range in the last month. With the Stochastic oscillator not showing any overbought or oversold levels the movement on the chart could be either direction.
The bulls for the time being look strong with no signs of reversal yet while the 50 day moving average and the lower band of the Bollinger bands are acting as a support on the price around the $86 price area.