Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, enterprise-software giant Oracle (NYSE: ORCL ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Oracle and see what CAPS investors are saying about the stock right now.
Oracle facts
| Headquarters (founded) | Redwood City, Calif. (1977) |
| Market Cap | $144.7 billion |
| Industry | Systems software |
| Trailing-12-Month Revenue | $37.2 billion |
| Management | Co-Founder/CEO Larry Ellison President/CFO Safra Catz |
| Return on Equity (average, past 3 years) | 24% |
| Cash/Debt | $32.2 billion / $18.5 billion |
| Dividend Yield | 1.5% |
| Competitors | IBM Microsoft SAP |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 3,727 members who have rated Oracle believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, Gainster, succinctly summed up the Oracle bull case for our community:
Growth of cloud services / Internet use should affect this great database company positively. ... The [return on invested capital] has been increasing steadily the last four years and is above 13% by now. In this perspective the stock is relatively cheap. Further the Price/Earnings and Price/Book is at the low end compared to the last 10 years.
At my workplace they tried to switch to MSSQL databases, but were forced to switch back for economical reasons. This is the same for many other companies and therefore they have a good hold of their market share, that includes the top 100 Fortune firms. ...
Overall it seems like a very good and stable investment, with growth potential in the core business, a small dividend and a nice increasing ROIC since 2010.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Oracle may not be your top choice.
In fact, it's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.
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