Momentum Meets Value: Oracle Stock's Next Leg Could Be Higher

Core Viewpoint - Oracle (ORCL) stock is positioned as a strong investment opportunity due to its robust margins, low-debt capital structure, fair valuation, and positive momentum [2] Financial Performance - Oracle experienced a revenue growth of 9.7% over the last twelve months (LTM) and an average growth of 10.2% over the past three years [7] - The company has an operating cash flow margin of approximately 35.6% and an average operating margin of 30.3% over the last three years [7] Market Position - Oracle is currently in the top 10 percentile of stocks based on "trend strength," indicating strong momentum [7] - Despite its positive momentum, ORCL stock is trading 13% lower than its 52-week peak, suggesting potential for further growth [7] Investment Strategy - The selection strategy for stocks includes criteria such as a market capitalization greater than $2 billion, high operating and cash flow margins, no significant revenue declines in the past five years, reasonable valuation, low-debt capital structure, and strong momentum [6] Performance Metrics - The average 12-month forward returns for selected stocks are nearly 15%, with a win rate of approximately 60% for selections returning positive [8]