The increasing digitization and the use of analytics across almost every industry to increase work efficiency and magnify opportunities is enhancing the prospects of big data companies. The adoption of Big Data analytics has increased significantly among enterprises as it provides an almost limitless source of business and informational knowledge, improving the operational prospects for businesses.
Moreover, businesses worldwide embracing cloud-based technologies and smart applications and investing in modernizing and automating the work environment leads to the generation of huge databases, driving the big data analytics market. Moreover, the rising adoption of IoT, AI, and ML are also enhancing the employment of data computing and analytics. The global big data analytics market is projected to grow at a CAGR of 13.2% by 2028.
Given this backdrop, fundamentally sound big data stocks Oracle Corporation (ORCL) and Teradata Corporation (TDC) could be solid bets now.
Oracle Corporation (ORCL)
ORCL provides products and services that address enterprise information technology (IT) environments. The company’s businesses include cloud and license, hardware, and services.
On May 12, 2022, Nokia Corp. ADR (NOK) selected ORCL as a part of its global digitization program to use the Oracle Fusion Cloud Human Capital Management (HCM) solution to manage all its HR processes worldwide. This would help Nokia enhance its efficiency, productivity, and business agility and reach the next level of digital maturity. This collaboration with Nokia, one of the leading players in the telecommunication industry, is expected to be strategically beneficial for ORCL.
ORCL announced a new integration between Oracle Service and Oracle Unity by embedding data from Oracle Unity Customer Data Platform (CDP) to Oracle Service. This would provide service agents with real-time customer insights and recommendations, thereby improving agent efficiency and service quality. ORCL’s innovation is expected to be a pivotal differentiator in how companies understand and enhance their customer experiences.
ORCL’s total revenues increased 4.2% from the prior-year quarter to $10.51 billion in the fiscal quarter ended February 28, 2022. Cash and cash equivalents balance stood at $22.68 billion, up 1.6% for the nine months ended February 28, while the net cash provided by investing activities increased 234.8% to $12.38 billion in the same period.
The consensus EPS estimate of $1.13 for the fiscal quarter ending August 2022 represents a 9.3% improvement year-over-year. The consensus revenue estimate of $10.25 billion for the same quarter represents a 5.4% increase from the same period last year. It has an impressive earnings surprise history, as it topped Street EPS estimates in three of the trailing four quarters.
The stock has slumped 8.6% over the past year to close the last trading session at $71.03.
ORCL’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our POWR ratings system. The POWR ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
ORCL also has a B grade in Stability, Sentiment, and Quality. It is ranked #18 of 159 stocks in the Software - Application industry.
Beyond what is stated above, we’ve also rated ORCL for Value, Momentum, and Growth. Get all the ORCL ratings here.
Teradata Corporation (TDC)
TDC provides a connected multi-cloud data platform for enterprise analytics to various industries, including automotive, energy and natural resources, financial services, government, healthcare, manufacturing, retail, and telco.
For the fiscal first quarter ended March 31, 2022, TDC’s total revenue increased 1% year-over-year to $496 million, while its net cash provided by operating activities grew 37.3% from the year-ago value to $151 million.
Analysts expect TDC’s revenue for the fiscal year ending December 2023 to come in at $1.90 billion, indicating an increase of 3.9% year-over-year. Its EPS is expected to grow 28.2% year-over-year to $2.06 in the same period. The company also surpassed the consensus EPS estimates in each of the trailing four quarters.
TDC’s shares have slumped 16.2% over the past year to close the last trading session at $33.76.
It is no surprise that TDC has an overall rating of B, equating to Buy in our POWR Ratings system.
TDC has an A grade in Value and Quality. Out of the 80 stocks in Technology - Services industry, TDC is ranked #20.
In addition to the POWR Rating grades I’ve just highlighted, you can see the TDC’s growth, Momentum, Stability, and sentiment ratings here.
ORCL shares were trading at $70.73 per share on Thursday afternoon, down $0.30 (-0.42%). Year-to-date, ORCL has declined -18.28%, versus a -17.14% rise in the benchmark S&P 500 index during the same period.
About the Author: Komal Bhattar
Komal's passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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