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SAN FRANCISCO, CA - OCTOBER 22: Oracle co-founder and Chairman Larry Ellison delivers a keynote address during the Oracle OpenWorld on October 22, 2018 in San Francisco, California. The Oracle co-founder and Chairman kicked off the annual Oracle OpenWorld conference that runs through October 25th. (Photo by Justin Sullivan/Getty Images) Getty Images Oracle (ORCL) stock could be a strong contender to capitalize on the current momentum. Why? Because it possesses strong margins, a low-debt capital structure, and strong momentum. Here are some statistics. Revenue Growth: Oracle experienced a revenue increase of 9.7% in the last twelve months (LTM) and a 10.2% average over the past three years, but this is not primarily a growth narrative. Long-Term Profitability: Approximately 35.6% operating cash flow margin and a 30.3% operating margin average over the last three years. Strong Momentum: Currently positioned in the top 10 percentile of stocks regarding "trend strength" – our unique momentum indicator. Room To Run: Even with its momentum, ORCL stock is currently 20% below its 52-week peak. While revenue growth is beneficial, this selection focuses on harnessing momentum with quality – a judgment based on margins (indicative of pricing power / robust business model) and capital structure (not excessively debt-laden). Also see, Oracle Stock To $183? Oracle’s stock skyrocketed by nearly 40% in a single day on September 10, 2025, its biggest one-day jump in over three decades, after the company unveiled a massive $455 billion cloud and AI backlog and announced several large-scale infrastructure contracts tied to artificial intelligence. The rally, which added over $200 billion to Oracle’s market capitalization and briefly pushed it toward the $1 trillion mark, reflected soaring investor confidence in Oracle’s position as a major player in the AI-driven cloud infrastructure space. To provide some context, Oracle offers cloud software as a service, specialized cloud solutions, application licenses, license support, an enterprise database, a development language, and middleware services. MORE FOR YOU But do these figures reveal the complete narrative? Read Buy or Sell ORCL Stock to determine if Oracle remains competitive beneath the surface. Stock picking often yields disappointing results. High Quality Portfolio transforms insights from individual stocks into a solid market-beating portfolio strategy. Stocks Like These Can Outperform. Here Is Data Here is our method for selection: We focus on stocks with a market cap over $2 Billion, high operating and cash flow from operations (CFO) margin, no significant revenue decline in the last 5 years, a low-debt capital structure, and strong momentum as described by our proprietary momentum metric. Presented below are statistics for stocks that adhere to this selection strategy from 12/31/2016 to 6/30/2025. Average 12-month forward returns of nearly 15% 12-month win rate (percentage of picks yielding positive returns) of around 60% But Consider The Risk Nonetheless, Oracle is not protected from substantial declines. It dropped nearly 77% during the Dot-Com Bubble and fell over 41% throughout the Global Financial Crisis. The Inflation Shock was also detrimental, with a 40% decrease. Even smaller incidents—like the 2018 Correction and the Covid Pandemic—caused declines of approximately 19% and 29%, respectively. Strong fundamentals are essential, but during sell-offs, Oracle can experience severe pullbacks. The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, boasts a history of comfortably outperforming its benchmark that encompasses all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? As a collective, HQ Portfolio stocks provided superior returns with diminished risk compared to the benchmark index; a smoother experience, as shown in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
