Oracle: 15% Gain Likely By 2013
In keeping with its balance sheet, I believe Oracle Corporation (ORCL) is currently one of the more appealing assets to own in the computer software and hardware industries. In the following article, I will explain why investors should buy shares in Oracle now, while shareholders should continue to hold to shares for capital appreciation and adequate dividends.
Oracle is expecting more growth in its Exa hardware division next year, while it continues to provide upgrades in industry specific software and cloud services. Oracle is entrenched in industries of high growth potential, so shareholders can feel assured in substantial earnings for the long term. Here is what I found:
Oracle’s sales growth has increased by over 20 percent from the previous quarter. Its sales growth has increased by less than 2 percent from the previous year. Oracle’s current price is less than 12 times earnings; this is an improvement from the trailing 12 months price of less than 13 times earnings. Its beta is over one, while it’s PEG ratio is less than one.
Oracle’s return on equity has decreased marginally over the past three quarters. Its operating margin and net margin have each increased by more than 1 percent over the past three quarters. Oracle’s current ratio has decreased over the past three quarters, but still remains above 2.5. Oracle has been able to slightly lower its debt to equity ratio over the past three quarters as well.
Oracle’s dividend yield is around .81 percent, which equates to an annual rate of $0.24.To continue reading, click here.