Oracle Corporation provides software and information technology products for on-site applications on customized hardware and in software for cloud computing services. The company is scheduled to report earnings after the closing bell on Monday, March 19.
The stock closed Friday, March 16, at $52.27, up 10.6% year to date and up 13.6% from its Feb. 9 low of $45.92. Oracle set its all-time intraday high of $53.48 on March 13 and then closed below its March 12 low of $52.66, which defines a daily “key reversal.” The stock has been above a “golden cross” on its daily chart since Feb. 24, 2017, and is well above its 200-week simple moving averageor “reversion to the mean” at $42.40. The stock has been riding its “reversion to the mean” higher since December 2004.
Analysts expect Oracle to post earnings per share of 72 to 74 cents when the company reports results on Monday. Analysts have recently upped their estimates, which fueled strength to the stock’s new high on March 13. The “key reversal” is a warning that an earnings beat is already priced into the stock. (See also: Oracle’s Plan to Beat Amazon, Microsoft on Cloud.)
Oracle reports earnings with a market-neutral P/E ratio of 22.43 and a dividend yield of just 1.45% but under a cloud called a “key reversal.” …read more
Read more here: Oracle Reports Earnings Below ‘Key Reversal’ Day