Despite the fairly recent woes of the past in earnings, Oracle is now back up close to within about 2% of its 52-week high of $33.29. The consensus analyst price target is also above $35.80 for this stock, which we would note represents an all-time high.
If Oracle only meets its earnings estimates for its fiscal year of May 2013, this stock is not expensive at barely about 12-times earnings. Options traders appear to be braced for a move up to almost 3% in either direction. If there is a disappointment, the longer-term moving averages are too far under the current price to offer much objectivity as the 50-day moving average is at $31.01 and the 200-day moving average is all the way down at $29.77.
One research note stood out recently. Oracle was only reiterated with an Outperform rating by Credit Suisse, but this came along with a $40 price target. The firm even summarized its call as follows by saying “Headwinds Fading… So, Jump on Board!”
We were a bit disappointed with Oracle over its dividend policy. Rather than deliver a large one-time dividend to return capital to holders ahead of a tax hike, Oracle slid forward the 2013 payouts for January, April and July into December. While this was somewhat aggressive, it really did not get Oracle on a real competitive landscape as far as a permanent dividend policy when Larry Ellison has already said he will not be pursuing any large acquisitions in the near future.
Oracle’s market capitalization rate is $157 billion and Thomson Reuters has a consensus estimate for its fiscal year in May 2013 of almost $38.3 billion.
JON C. OGG
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.