Industry Stalwart Oracle, like many of its tech giant peers, has climbed aboard the AI train as it rolls out of the station. The Relative Strength (RS) Rating for Oracle stock climbed into a new percentile on Monday, as it shot up seven points to 74, up from 67.
Oracle earnings rose 16% last quarter to $1.41 per share on 7% revenue growth to $13.3 billion. Meanwhile, Oracle stock hit a fresh intraday all-time high on March 21. Since then it's formed a cup base. Analysts see continued growth ahead for Oracle.
Oracle co-founder and Chief Technology Officer Larry Ellison recently said in a presentation on the company's website that with artificial intelligence plagiarism may be a thing of the past.
Oracle Stock Nearing Milestone
Ellison said that vector searches using AI "look at phrases that are similar, phrases that are identical, phrases that are almost identical. That's how they track down plagiarism, by the way. Right now plagiarism is virtually impossible because I can do a vector search, and it doesn't have to be an exact match of what you wrote."
The upgraded 74 RS Rating shows that Oracle stock outperformed 74% of stocks for price performance over the past year. Oracle stock is nearing a major milestone. The top stocks often have an RS Rating north of 80 as they begin their biggest runs. See if Oracle can continue to rebound and hit that benchmark.
Among its other key ratings Oracle stock has a strong 89 Earnings Per Share Rating out of 99. Its milder but still decent 83 Composite Rating puts it in the top 17% of stocks for a combined rating of five fundamental and technical ratings.
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Additionally, Oracle stock has an outstanding B+ Accumulation/Distribution Rating on an A+ to E scale with A+ terrific and E a washout.
Working On A Cup Base
However, please note that analysts project earnings will decline 13% this quarter on a tough comparison with strong results the same quarter a year ago. Revenue this quarter is seen rising 6% year over year to $14.6 billion.
Oracle stock is trying to complete a cup without handle with a 132.77 entry. See if it can break out in heavy trade. Monday afternoon Oracle traded at about 124, down for the day.
Database Software Group Among Leaders
Oracle makes database software for cloud computing using AI and standard technology, among other software offerings. It sells to a large customer base including a variety of industries and government agencies.
Oracle stock holds the No. seven rank among its peers in the 22-stock Computer Software-Database industry group. Commvault Systems, Elastic and Varonis Systems are among the top 5 highly rated stocks in the group.
The group as a whole has an outstanding No. 11 rank among the 197 industry groups IBD tracks. That's slipped though from a lofty No. 4 rank six months ago.
IBD's proprietary Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
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