Schaeffer's Top Stock Picks for '25

This Mega-Cap Stock is a High-Risk Investment Right Now

Shares of ORCL have risen by 24% from its 52-week low

Aug 16, 2022 at 11:16 AM
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Oracle Corporation (NYSE:ORCL) is one of the largest software companies in the world with a market-cap of $210.8 billion. ORCL sells database software and technology, cloud engineered systems, and enterprise software products such as enterprise resource planning (ERP) software, human capital management (HCM) software, customer relationship management (CRM) software, enterprise performance management (EPM) software, and supply chain management (SCM) software. At last check, ORCL was trading up 0.2% at $79.25.

Oracle stock has moved 12% lower over the past 12 months and has decreased about 26% since peaking at a record high of $106.34 in December. Additionally, shares of ORCL have dropped 10% year-to-date. Nonetheless, Oracle stock has increased 11% over the past month and has recovered 24% since bottoming at a more than 52-week low of $63.76.

Moreover, Oracle stock trades at an intriguing forward price-earnings ratio of 14.51 and a price-sales ratio of 5.07. ORCL also offers a dividend yield of 1.62% with a forward dividend of $1.28. In addition, Oracle is expected to grow its revenues 17.7% for fiscal 2023. Unfortunately, the software company's growth rate is expected to slow down for fiscal 2024, with estimates predicting just a 6.1% increase in revenue.

Additionally, ORCL holds a weak balance sheet with $79.49 billion in total debt and $21.9 billion in cash, rounding out an unideal set of fundamentals backing Oracle stock.

Short-term options traders have been incredibly call-biased of late, per ORCL's Schaeffer's put/call open interest ratio (SOIR) of 0.77, which stands in the 16th percentile of its annual range. Echoing this, over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock boasts a 50-day call/put volume ratio of 3.93, which ranks higher than 92% of readings from the past year. This means calls are getting picked up at a quicker-than-usual clip. 

 
 

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