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How To Buy Oracle Stock Now, Forecast and Dividend Guide

November 23, 2021 16:37

Oracle stock is an obvious choice for many investors as one of the safest stock bets in the technology sector. The stock has many strong points that appeal to investors of all profiles. In this analysis, we will recall Oracle’s activities and business model and study the historical evolution of its price.

Of course, we will also look at Oracle’s share price expectations, studying the company’s share charts and financials, as well as consulting analysts’ opinions. Finally, we will introduce you to an intermediary who we believe is one of the best brokers to buy Oracle stock easily and cheaply.

Oracle Overview

Oracle is one of the largest technology companies in the United States and one of the oldest, as it has been known under its current name since 1983. The company designs, manufactures and sells software and hardware products and additional services such as training in the use of its software.

Oracle has a highly developed range of solutions and software in the field of database management. For example, it has acquired the famous MySQL technology used by most websites. But it also offers services related to cloud computing, physical servers, customer relationship software, and a whole range of services developed through acquisitions made over the company’s history.

Given the nature of the products and services offered, the vast majority of Oracle’s customers are businesses, which has several advantages. Indeed, IT infrastructure is essential for companies and is therefore probably the last expense item that they will reduce in the event of another economic crisis. This implies that Oracle’s financial results are unlikely to fall significantly in a downturn in the economy.

en stock trading and price

Oracle Stock Historical Price

Oracle shares are listed in the United States on the New York Stock Exchange (NYSE) under the symbol ORCL and the ISIN code US68389X1054. It is an essential component of many prestigious US stock market indices, such as the S&P 500 or the Dow Jones.

Oracle’s market capitalization is currently $238 billion, after a 44% increase in the last 12 months. During this period, the lowest price was $55, while the highest was recorded at nearly $92. Oracle’s P/E is 18, which makes it a more expensive stock than many other tech stocks. On the other hand, Oracle’s dividend is quite comfortable, which is rare for a stock in this sector. We’ll discuss Oracle stock dividend in more detail later in this guide.

Oracle Stock Price History

Before that, we’ll look at Oracle’s share price history below to see if the very long-term trend is positive. As can be seen on the monthly share price chart below, the Oracle stock price history was really in trouble only one time, during the Internet crisis of the 2000s, which sent the entire technology sector into a tailspin at the time.

Following this phase of decline, which lasted a little over two years, Oracle shares found support just below $8, which served as the starting point for a very long-term uptrend in which it is still engaged. More recently, we note that the rise of Oracle stock has accelerated sharply since the beginning of 2021. The Oracle stock price today shows indeed an increase of about 50% since January.

Why Invest in Oracle Share? Points to Consider

In this section, we will look at different arguments that make Oracle stock a good investment. To do so, we will review the strengths of its business model, its dividend, as well as Oracle’s stock forecast from various angles.

Oracle Business Model and Share Price

Like other legacy technology companies, Oracle has saturated its primary market over several decades of existence, which a priori limits its growth prospects. However, competition from new players, and the fact that many traditional IT services can now be replicated in the cloud, has prompted several companies, including Oracle, to innovate.

Certainly, Microsoft has had more success than Oracle since launching its own cloud services, but Oracle is also doing much better than others. And the contribution of these new cloud activities is already having a visible impact on the financial results. In other words, the Cloud Computing business offers Oracle the opportunity to add a new high-margin revenue stream to an already solid and profitable software and hardware portfolio.

Oracle Stock Dividend Information

Oracle dividend currently represents a yield of 1.5%, which is quite comfortable for a technology stock. Moreover, its low payout ratio of 28% means that the company has room to increase its dividend in the future.

This is all the more likely as Oracle benefits from a comfortable cash cushion, having ended Q2 with $28 billion in cash on its books. Finally, note that Oracle’s nominal dividend has never been cut since 2013.

Oracle Stock Forecast and Prediction

What can we expect from Oracle stock in the future? Let’s now look at the Oracle stock forecast and predictions to get more insight on the topic.

Oracle Stock Financial Forecast

Oracle’s Q2 2021 earnings release came as a pleasant surprise, with earnings per share coming in at $1.03, compared to the average consensus forecast of $0.97. Revenue was broadly in line with expectations, at $9.73 billion.

For the next quarter, analysts are also optimistic. Indeed, the average EPS forecast is $1.08, while the revenue forecast is $10.22, which would represent a significant increase both compared to Q2 2021 and to the same quarter last year.

In addition, it is important to note that Oracle has exceeded consensus EPS expectations for the past 17 consecutive quarters.

Oracle Technical Forecast

From a chart perspective, we note that Oracle stock forecast seems bullish. The shares are in an uptrend, with an ascending channel clearly visible on the weekly chart.

We can also see that Oracle is currently on the lower bound of this channel. Therefore, the next most likely move is a return to the upper bound of the channel, which implies a target of about $100, and a comfortable upside potential from the Oracle stock price today.

Finally, investors should note that only a return below $80 would begin to challenge the bullish pattern visible on the long-term charts.

Oracle Stock Forecast from Analysts

Of the 19 professional analysts who provide Oracle stock price forecast, 5 recommend buying, 12 recommend holding, and 2 recommend selling. The analysts’ opinion is, therefore, moderately bullish for Oracle stocks.

As for the average price target targeted by these analysts, it stands at $92, which implies a potential upside of more than 5% compared to Oracle stock price today.

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Where to Buy Oracle Stock

It is sometimes difficult to choose an online broker as there are so many. That’s why we’ve reviewed many of them to determine which is the best one to buy Oracle stock. And the name that came up most often was the broker ZFX.

ZFX, a world class MT4 Broker

This is a relatively new broker, as it was only created in 2018. However, its seriousness is not to be questioned, as ZFX is regulated by the FCA.

ZFX provides its clients with the MT4 trading platform, which is widely popular globally thanks to its many advantages in terms of technical analysis and automated trading.

Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.

How Can I Buy Oracle Stock Easily?

Buying Oracle stock from ZFX broker is a quick and easy process. In fact, you will be able to open an online account in just a few minutes by following these steps:

  • 1 – Register with ZFX
  • 2 – Verify your ZFX account
  • 3 – Make your first deposit
  • 4 – Buy Oracle stock

Let’s go through each of these steps in detail.

1 – Register with ZFX

You will need to go to the ZFX website homepage and click on the “Open an account” button for this first step. A registration form will appear. You will need to enter several personal details, as shown in the image below. Oracle Stock | ORCL Chart, Forecast, Dividend and How to Invest

It will also be necessary to verify your phone number via SMS. You will then have to choose your account type, and accept the general and privacy policies.

Trade with ZFX - basic info to trade Oracle stock

After completing and validating the form, you will be able to download the MT4 platform immediately.

MT4 Login

You will also need to make your first deposit.

2 – Make your first deposit

To deposit money into your ZFX account, you will need to click the “make a deposit” button on the screen displayed immediately after registration. You will then have to choose a payment method. Let’s take Mastercard as an example:trade Facebook stock with ZFX - Step 3

You will need to enter the amount to deposit. Then, click the “Confirm Deposit” button on this screen. You will then need to enter your credit card information before the final validation of the payment.

3 – Account verification

The final step before you can purchase the Oracle stock is to verify your account. To do this, you will need to submit supporting documents online, as shown below:

trade Facebook shares with ZFX - Step 4

4 – Buy Oracle stock

Once ZFX validates your documents, you will then be ready to buy Oracle stock. To do so, you will need to download the MT4 platform which ZFX provides, as previously mentioned. Follow the steps as shown on your screen. Then, you can choose the Oracle stock and begin investment.

Bottom Line: Should You Buy Oracle Stock ?

Oracle stock is a smart bet on the technology sector for many reasons. Its business exposes it to the exponential growth promised by cloud computing over the next few years. It’s also a stock that will satisfy income-seeking investors, as it pays a steady dividend.

The outlook is also favorable, whether you look at the financial forecasts or the technical context. Indeed, Oracle’s share price has been trending strongly upwards since the beginning of the year. And so far, it shows no signs of weakening.

Do you think that Oracle stock would be an ideal addition to your stock portfolio? If so, you can trade ORCL today with ZFX. Indeed, for many reasons discussed in this guide, we believe it is the best broker to buy Oracle stock today easily.

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