4-Star Stocks Poised to Pop: Oracle
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, enterprise-software giant Oracle (NAS: ORCL) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Oracle's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Redwood City, Calif. (1977)|
|Market Cap||$144.7 billion|
|Trailing-12-Month Revenue||$36.7 billion|
|Management||Co-founder/CEO Lawrence Ellison|
CFO Safra Catz
|Return on Equity (Average, Past 3 Years)||22.9%|
|Cash/Debt||$31.0 billion / $14.8 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 3,551 members who have rated Oracle believe the stock will outperform the S&P 500 going forward.
Oracle recently acquired Taleo at an extremely questionable valuation. ... Since the announcement, Oracle has gotten cheaper. Oracle is very cheap on a forward multiple given their historical growth rate. I believe this company could have a 13x-17x multiple on next year's projected earnings, but as always I'll settle my price range for a tad less. Target: $32-$38. I think that this is as close to a screaming buy as you can get if you have a long term perspective.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Oracle, IBM, and Microsoft. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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