Value Stocks would help us to Survive a Possible Recession: Oracle
Oracle is
one of the important players in the technology sector. Its shares have lost 25%
since the beginning of 2022. Its business is much more stable and cannot grow
by double digits as some other younger peers in the sector. However, the company’s
efforts towards developing cloud-based solutions are strong and stable
financial results are prompting elevated demand for ORCL stocks as a safe haven
asset.
The company
has a diversified product portfolio from software to the management of
financial activities, sales, and supply chains to infrastructure solutions like
Oracle Autonomous Database. The company is on its way to transforming its
business model to cloud-based solutions on the subscription basis.
The
financial Q4 2022 that ended May 31 showed that cloud segment revenues rose by
19% year-on-year to $2.9 billion. Some businesses have performed even better.
Fusion Cloud posted revenues up by 20% as the company is taking over in the health
information technology sphere beating its peers like Kronos, Workday and SAP. Management
is pushing up the development of the data management system MySQL that processes transactions seven times faster
than same solution AWS Aurora from Amazon.
Oracle
corporation management is expecting 2022 operational margin at 45-46%, that is very
much above other software corporations and most importantly above the
prepandemic level of Oracle itself when the operational margin reached 44%. The
company pays regular dividends. It has also launched a buyback program to get
its shares back at discount prices now. During the last four quarters Oracle has spent more than $16 billion for
buybacks and may continue to spend money on this as its stock prices are going
down.
The
mid-term target price for ORCL stock at $78 is intact.
Disclaimer:
The comments, insights, and reviews posted in this section are solely the opinions and perspectives of authors and do not represent the views or endorsements of RHC Investments or its administrators, except if explicitly indicated. RHC Investments provides a platform for users to share their thoughts on financial market news, investing strategies, and related topics. However, we do not guarantee the accuracy, completeness, or reliability of any user-generated content.
Investment Risks and Advice:
Please be aware that all investment decisions involve risks, and the information shared on metadoro.com should not be considered as financial advice. Always conduct thorough research, seek professional advice, and exercise caution when making investment decisions.
Moderation and Monitoring:
While we strive to maintain a respectful and informative environment, we cannot endorse or verify the accuracy of all user-generated content. We reserve the right to moderate, edit, or remove any comments or posts that violate our community guidelines, infringe on intellectual property rights, or contain harmful content.
Content Ownership:
By submitting content to metadoro.com, users grant RHC Investments a non-exclusive, royalty-free license to use, display, and distribute the content. Users are responsible for ensuring they have the necessary rights to share the content they post.
Community Guidelines:
To maintain a positive and respectful community, users are expected to adhere to the community guidelines of Metadoro. Any content that is misleading, offensive, or violates applicable laws and regulations will be subject to moderation or removal.
Changes to Disclaimer:
We reserve the right to update, modify, or amend this disclaimer at any time. Users are encouraged to review this disclaimer periodically to stay informed about any changes.
