Oracle stock has surged 21% YTD with strong Q3 performance and positive outlook.

From Nasdaq:

Oracle’s stock (NYSE: ORCL) has surged 21% YTD, outperforming the S&P500 by 14%. With a strong Q3 performance and a promising contract pipeline, the stock is trading slightly below its fair value at $128 per share. The company expects continued growth in revenues and net income, leading to a valuation of $130.

In Q3 2024, Oracle reported total revenues of $13.3 billion, up 7% y-o-y, driven by a 12% increase in cloud services & license support. Operating expenses decreased to 72% of revenues, leading to a 27% increase in net income to $2.4 billion. For the first nine months of FY 2024, total revenues reached $38.7 billion, with net income growing 41% y-o-y to $7.3 billion.

Looking ahead to Q4 FY2024, Oracle is expected to continue its growth trajectory, with forecasted revenues of $53.4 billion for the year. Net income margin is projected to improve, resulting in an annual GAAP EPS of $4.01 and a valuation of $130 per share.

In the current financial climate, Oracle’s stock has seen impressive gains, rising 100% since early 2021. Despite market volatility, Oracle has consistently outperformed the S&P500 over the past three years. With a strong track record and positive outlook, Oracle remains a promising investment option for investors looking for stable returns.



Read more at Nasdaq: Up 11% In The Last Trading Session, What To Expect From Oracle Stock?