We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Oracle Launches Investigation Hub: How Should You Play the Stock?
Read MoreHide Full Article
Oracle (ORCL - Free Report) on Monday announced Oracle Financial Services Crime and Compliance Management’s (FCCM) Investigation Hub Cloud Service.
The Investigation Hub aims to deliver a modern client experience by integrating AI and reducing manual tasks, removing data silos, and elevating the insights needed to analyze and combat financial crimes.
It is built on Oracle Cloud Infrastructure and can be integrated with other FCCM solutions.
Oracle’s AI-integrated solution will aid tier-one institutions and banks to perform faster and precise investigations, cost-effectively.
Investigation Hub aims to automate tasks, provide data-rich insights, and streamline workflows by using integrated graph analytics and in-built AI.
Oracle’s latest solution will automate the data gathering process, SAR filling and other manual tasks to create a unified view of all data. This will reduce investigation touch time by up to 70%.
Investigation Hub is configurable to fit the institution and investigation team’s needs aiding efficiency and scalability.
It will be updated with the latest AI and ML capabilities to effectively tackle regulatory changes.
ORCL Shares Ride on Strong Top-Line Growth
ORCL shares have returned 65.4% year to date (YTD), outperforming the broader Zacks Computer and Technology sector’s appreciation of 22.3%.
Over the same timeframe, shares of SAP, Salesforce and Microsoft have returned 46.7%, 10.6% and 10.2%, respectively. The industry has appreciated 9.9% YTD.
Oracle’s outperformance can be attributed to strong top-line growth. In fiscal 2024, revenues increased 6% over fiscal 2023 to $53 billion. Cloud revenues jumped 24% year over year to $19.7 billion.
Oracle’s datacenter business is driving topline growth. It has 162 cloud datacenters, live and under construction, around the globe.
Oracle Cloud Aids Top-Line Growth
ORCL’s cloud is driving topline growth as its Saas, IaaS and PaaS infrastructure aids businesses in transitioning to cloud.
During fiscal 2024, Oracle signed the largest sales contract in its history, driven by AI LLM demands in Oracle Cloud.
ORCL signed a multicloud agreement with AWS, joined by Microsoft Azure and Google Cloud, to make OCI and Oracle available on their clouds.
Clients will be able to avail latest ORCL technology within every Hyperscaler’s cloud and will be able to utilize ORCL’s Exadata and Exascale RDMA clusters from Google Cloud and AWS Cloud.
The partnership includes Exadata hardware and Version 23ai of software and is expected to go live in December 2024.
Oracle also expanded its multicloud cooperation with Microsoft to develop and support Open AI and Chat GPT.
Oracle Offers Positive Q2 Guidance
For the second quarter of fiscal 2025, ORCL expects non-GAAP earnings between $1.42 per share and $1.46 per share.
Oracle expects total revenues to grow in the band of 7-9% in constant currency and between 8% and 10% on a reported basis.
Moreover, Oracle expects total cloud revenues to grow in the range of 23-25% at constant currency and 24-26% on a reported basis.
Earnings Estimate Revisions Trend Higher for ORCL
The Zacks Consensus Estimate for Oracle’s second-quarter fiscal 2025 earnings is pegged at $1.48 per share, up by a couple of cents over the past 30 days and indicating 10.45% year-over-year growth.
The consensus mark for ORCL’s revenues is currently pegged at $14.12 billion, indicating year-over-year growth of 9.14%.
ORCL’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.28%.
Oracle shares are overvalued at this moment, as suggested by a Value Score of D.
In terms of the forward 12-month Price/Earnings (P/E) ratio, ORCL is trading at 32.25X, higher than the Zacks Computer & Technology sector’s 26.21X.
Higher spending on product enhancements, especially toward the cloud platform amid increasing competition in the cloud domain remains a concern for Oracle.
ORCL currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock.
Image: Bigstock
Oracle Launches Investigation Hub: How Should You Play the Stock?
Oracle (ORCL - Free Report) on Monday announced Oracle Financial Services Crime and Compliance Management’s (FCCM) Investigation Hub Cloud Service.
The Investigation Hub aims to deliver a modern client experience by integrating AI and reducing manual tasks, removing data silos, and elevating the insights needed to analyze and combat financial crimes.
It is built on Oracle Cloud Infrastructure and can be integrated with other FCCM solutions.
Oracle’s AI-integrated solution will aid tier-one institutions and banks to perform faster and precise investigations, cost-effectively.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
ORCL Investigation Hub Enhances User Experience
Investigation Hub aims to automate tasks, provide data-rich insights, and streamline workflows by using integrated graph analytics and in-built AI.
Oracle’s latest solution will automate the data gathering process, SAR filling and other manual tasks to create a unified view of all data. This will reduce investigation touch time by up to 70%.
Investigation Hub is configurable to fit the institution and investigation team’s needs aiding efficiency and scalability.
It will be updated with the latest AI and ML capabilities to effectively tackle regulatory changes.
ORCL Shares Ride on Strong Top-Line Growth
ORCL shares have returned 65.4% year to date (YTD), outperforming the broader Zacks Computer and Technology sector’s appreciation of 22.3%.
Its shares have also outperformed the Zacks Computer – Software industry and peers, including SAP (SAP - Free Report) , Salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) .
Over the same timeframe, shares of SAP, Salesforce and Microsoft have returned 46.7%, 10.6% and 10.2%, respectively. The industry has appreciated 9.9% YTD.
Oracle’s outperformance can be attributed to strong top-line growth. In fiscal 2024, revenues increased 6% over fiscal 2023 to $53 billion. Cloud revenues jumped 24% year over year to $19.7 billion.
Oracle’s datacenter business is driving topline growth. It has 162 cloud datacenters, live and under construction, around the globe.
Oracle Cloud Aids Top-Line Growth
ORCL’s cloud is driving topline growth as its Saas, IaaS and PaaS infrastructure aids businesses in transitioning to cloud.
During fiscal 2024, Oracle signed the largest sales contract in its history, driven by AI LLM demands in Oracle Cloud.
ORCL signed a multicloud agreement with AWS, joined by Microsoft Azure and Google Cloud, to make OCI and Oracle available on their clouds.
Clients will be able to avail latest ORCL technology within every Hyperscaler’s cloud and will be able to utilize ORCL’s Exadata and Exascale RDMA clusters from Google Cloud and AWS Cloud.
The partnership includes Exadata hardware and Version 23ai of software and is expected to go live in December 2024.
Oracle also expanded its multicloud cooperation with Microsoft to develop and support Open AI and Chat GPT.
Oracle Offers Positive Q2 Guidance
For the second quarter of fiscal 2025, ORCL expects non-GAAP earnings between $1.42 per share and $1.46 per share.
Oracle expects total revenues to grow in the band of 7-9% in constant currency and between 8% and 10% on a reported basis.
Moreover, Oracle expects total cloud revenues to grow in the range of 23-25% at constant currency and 24-26% on a reported basis.
Earnings Estimate Revisions Trend Higher for ORCL
The Zacks Consensus Estimate for Oracle’s second-quarter fiscal 2025 earnings is pegged at $1.48 per share, up by a couple of cents over the past 30 days and indicating 10.45% year-over-year growth.
The consensus mark for ORCL’s revenues is currently pegged at $14.12 billion, indicating year-over-year growth of 9.14%.
ORCL’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.28%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
ORCL Shares - To Buy, Hold or Sell?
Oracle shares are overvalued at this moment, as suggested by a Value Score of D.
In terms of the forward 12-month Price/Earnings (P/E) ratio, ORCL is trading at 32.25X, higher than the Zacks Computer & Technology sector’s 26.21X.
Higher spending on product enhancements, especially toward the cloud platform amid increasing competition in the cloud domain remains a concern for Oracle.
ORCL currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.