Stunner: Oracle Breaks Out as Peers Languish
Software companies have lagged this year as investors focus on cyclicals like energy and financials. But one unexpected name is breaking out: Oracle.
As covered previously, strong earnings lifted ORCL to new highs in December. It then pulled back to old resistance and bounced. This week, its shares are closing above their previous all-time highs.
Two technical patterns stand out today.
First, notice how ORCL broke above $64 on February 22. The stock barely pulled back in subsequent sessions, even as the broader S&P 500 dove to a three-week low.
Second is ORCL’s relative strength compared to the broader technology sector.
Both of these trends are signs of accumulation. One positive catalyst is ORCL’s improving momentum in cloud-computing, which prompted analysts to raise price targets after last quarter. Now buyers are re-engaging with another set of numbers about two weeks away.
The company’s lower valuations may also provide some shelter against higher interest rates. ORCL trades for just 14 times forward earnings and 5 times revenue. Other big names like Salesforce.com and Adobe (which have gone half a year without hitting new highs) trade for at least 3 times more.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
As covered previously, strong earnings lifted ORCL to new highs in December. It then pulled back to old resistance and bounced. This week, its shares are closing above their previous all-time highs.
Two technical patterns stand out today.
First, notice how ORCL broke above $64 on February 22. The stock barely pulled back in subsequent sessions, even as the broader S&P 500 dove to a three-week low.
Second is ORCL’s relative strength compared to the broader technology sector.
Both of these trends are signs of accumulation. One positive catalyst is ORCL’s improving momentum in cloud-computing, which prompted analysts to raise price targets after last quarter. Now buyers are re-engaging with another set of numbers about two weeks away.
The company’s lower valuations may also provide some shelter against higher interest rates. ORCL trades for just 14 times forward earnings and 5 times revenue. Other big names like Salesforce.com and Adobe (which have gone half a year without hitting new highs) trade for at least 3 times more.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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