Why Oracle Is Poised to Outperform
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 has earned a respected four-star ranking.
With that in mind, let's take a closer look at Oracle and see what CAPS investors are saying about the stock right now.
Oraclefacts
Headquarters (founded) | Redwood City, Calif. (1977) |
Market Cap | $169.8 billion |
Industry | Systems software |
Trailing-12-Month Revenue | $37.2 billion |
Management | Co-Founder/CEO Larry Ellison President/CFO Safra Catz |
Return on Capital (average, past 3 years) | 23.5% |
Cash/Debt | $33.7 billion / $19.8 billion |
Dividend Yield | 0.7% |
Competitors | IBM Microsoft SAP |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 3,647 members who have rated Oracle believe the stock will outperform the S&P 500 going forward.
Just last week, one of those bulls, Googlespooch, succinctly summed up the bull case for our community:
Oracle holds a number of distinct competitive competencies. First of all, Oracle has an uncanny ability to continue to innovate and push new and better IT solutions products on the market. ...
In addition, Oracle has been able to effectively integrate the important components of companies that it has acquired without depreciating the corporate character of Oracle itself (this is definitely something that Hewlett-Packard could stand to educate itself on from Oracle). ...Another very important resource is Oracle's cash hoard. Oracle has a huge amount of cash on hand that has allowed it to weather downturns in the industry, take significant risks, and acquire interesting competitive firms. ...
Finally, Oracle has an extremely strong customer list. They hold the business of the top 100 Fortune firms which account for approximately $13 billion of revenue alone. ...
If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Oracle may not be your top choice.
We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Oracle Is Poised to Outperform originally appeared on Fool.com.
Fool contributor Brian D. Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of International Business Machines, Microsoft, and Oracle. 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
