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Oracle’s Long-Term Outlook Remains Bright

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Image: Oracle has some lofty targets for fiscal 2026, and we were encouraged by recent commentary from the firm. Image Source: Oracle By Brian Nelson, CFA Oracle Corp (ORCL) has been a strong relative performer during 2022, with shares sliding ~12% versus a market return that has been much worse during the year. Oracle recently offered an encouraging mid-cycle fiscal 2026 outlook, calling for $65 billion in total organic revenue, a 45% operating margin (including its recent acquisition of Cerner), and greater than 10% annual earnings per share growth in the coming years. At this writing, consensus expectations are for Oracle to achieve ~$49.2 billion in revenue for fiscal 2023, so this is no doubt good news, implying a strong … Read more

We’ve Suspended Coverage of Stocks in the Disruptive Innovation Industry

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Order the Exclusive publication here to gain access to idea generation that covers some of the most innovative stocks. As a member to the Exclusive publication, you’ll receive one income idea, one capital appreciation idea, and one short idea consideration each month! Order today >> — We’ve suspended coverage of stocks in the ‘Disruptive Innovation’ industry. The ‘Disruptive Innovation’ industry is unique in almost every way. The companies included don’t necessarily share a similar traditional industry or sector make-up, but they do share one big thing in common: They continue to disrupt the traditional way of doing things. Carvana is changing how consumers buy used cars, Roku is leading the streaming charge against linear TV, Teradyne’s industrial robotics technology is … Read more

Dividend Growth Idea Oracle Showing Serious Growth Momentum

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Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On June 13, Oracle Corporation (ORCL) reported fourth quarter earnings for fiscal 2022 (period ended May 31, 2022) that beat both consensus top- and bottom-line estimates. The tech giant also provided favorable constant currency revenue growth guidance for its cloud businesses for fiscal 2023. Shares of ORCL initially surged higher in the wake of its latest earnings report before drifting modestly lower along the decline in broader equity markets. We include Oracle as an idea in the Dividend Growth Newsletter portfolio and shares of ORCL yield ~1.9% as of this writing. Quarterly Update In the fiscal fourth quarter, Oracle’s GAAP revenues grew by 5% year-over-year and were up … Read more

Oracle Buys Cerner

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Image Source: Oracle Corporation – September 2019 Financial Analyst Meeting Presentation By Callum Turcan Oracle Corporation (ORCL) is one of our favorite dividend growth ideas that also earns high marks as it concerns ESG (environmental, social, and governance) investing standards. We use our proprietary ESG scoring matrix, which scores firms on a 1-100 scale (100 being the best), to gauge their adherence to ESG practices. Oracle scores a nice 96 ESG rating with a strong showing across all three categories. We include shares of ORCL as an idea in both the Dividend Growth Newsletter and our ESG Newsletter portfolios. The high end of our fair value estimate range sits at $101 per share of Oracle, comfortably above where shares are … Read more

Adobe Signals Near Term Growth Rate Slowing Down, Longer Term Outlook Still Quite Bright

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Image Source: Adobe Inc – December 2021 Financial Analysts Meeting IR Presentation By Callum Turcan On December 16, Adobe Inc (ADBE) reported fourth quarter earnings for fiscal 2021 (period ended December 3, 2021) that modestly beat consensus top- and bottom-line estimates. However, shares of ADBE plummeted in the wake of its latest earnings report as management signaled that the firm’s near term growth rate would slow down in fiscal 2022 versus levels seen in fiscal 2021. Investors were apparently hoping for more, though in our view, Adobe’s longer term growth outlook is still quite bright. Our fair value estimate sits at $576 per share of Adobe. Earnings Update The company’s GAAP revenues were up 20% year-over-year last fiscal quarter, reaching … Read more

Oracle Shares Surge!

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Image Source: Oracle Corporation – November 2019 IR Presentation By Callum Turcan Shares of Oracle Corporation (ORCL) surged in the wake of the tech giant reporting its second-quarter fiscal 2022 earnings (period ended November 30, 2021) on December 9, which beat both consensus top- and bottom-line estimates. We include Oracle as an idea in both the Dividend Growth Newsletter and ESG Newsletter portfolios (more on that here), and we couldn’t be more pleased with the company’s performance of late. Its pivot towards cloud-oriented offerings is playing out quite favorably as Oracle’s growth outlook is now quite bright. Earnings Update and Outlook Oracle’s GAAP revenues were up 6% year-over-year last fiscal quarter, hitting $10.4 billion. This was made possible via strong … Read more

Large Cap Growth Has More Room To Run

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“The stylistic area of large cap growth has been one of our favorite areas because of the strong net cash rich, free cash flow generating, secular growth powerhouses that make up much of the space. The image is a rundown of the key Valuentum statistics for the top 15 holdings of the Schwab U.S. Large Cap Growth ETF (SCHG). We believe where large cap growth goes, so does the broader market, considering the hefty weightings of some of these stocks in other broad-based indices. Based on the high end of our fair value estimate range for this group of bellwethers, the broader U.S. markets still have room to run, to the tune of 7%+, despite the many highs already reached … Read more

Dividend Growth Idea Oracle Stepping Up Cloud Investments to Build on Recent Momentum

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Image Shown: Oracle Corporation’s pivot towards cloud computing offerings continues. We include Oracle as an idea in our Dividend Growth Newsletter portfolio and continue to view its payout growth trajectory quite favorably. Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On June 15, Oracle Corporation (ORCL) reported fourth quarter fiscal 2021 earnings (period ended May 31, 2021) that beat both consensus top- and bottom-line estimates. The company’s GAAP revenues climbed higher 8% year-over-year and its GAAP operating income grew 5% year-over-year in the fiscal fourth quarter. Oracle cited growth at its Fusion and NetSuite cloud applications businesses along with growth at its Gen2 Cloud Infrastructure business as driving its financial performance in the fiscal fourth quarter. … Read more

Oracle Beats Consensus Estimates and Raises Its Dividend By 33%

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Image Source: Oracle Corporation – September 2019 Financial Analyst Meeting Presentation By Callum Turcan On March 10, Oracle Corporation (ORCL) reported third quarter earnings for fiscal 2021 (period ended February 28, 2021) that beat both consensus top- and bottom-line estimates. We include Oracle as an idea in the Dividend Growth Newsletter portfolio, and we are big fans of its impressive free cash flow generating abilities. The company’s Dividend Cushion ratio of 3.0 (a stellar ratio) earns Oracle an “EXCELLENT” Dividend Safety rating, and please note that these metrics incorporate our expectations that Oracle will push through meaningful payout increases over the coming fiscal years. We give Oracle an “EXCELLENT” Dividend Growth rating. In conjunction with its latest earnings report, Oracle … Read more

Oracle Posts Solid Earnings and Provides Favorable Near-Term Guidance

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Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On December 10, Oracle Corp (ORCL) reported second-quarter earnings for fiscal 2021 (period ended November 30, 2020) that beat both consensus top- and bottom-line estimates. In the fiscal second quarter, Oracle’s GAAP revenues advanced 2% year-over-year on the back of its ‘Cloud services and license support’ segment posting 4% sales growth. The company’s GAAP operating income rose 13% year-over-year last fiscal quarter, as operating expenses shifted lower 3% thanks to the efforts of Oracle’s management team to make cost containment efforts a priority. The firm’s diluted GAAP EPS came in at $0.80 during the second quarter of fiscal 2021, up 16% year-over-year thanks in part to its weighted-average outstanding … Read more