Following a miserable three-day decline in the broad markets, investors were waiting for some positive news to pounce on and doing some buying.
Oracle Corporation (NYSE: NYSE:ORCL) provided investors with a fourth-quarter beat and is Tuesday's PreMarket Prep Stock of the Day.
Oracle's Fall From Grace: In December, Oracle blasted to its all-time high when it peaked at $106.34 and weakened to end the year at $87.21. For the most part, it has been under constant selling pressure, with only one green month so far this year.
On Monday, the issue made a new low for the move at $63.76 and ended the session just above at $64.05. That marks the lowest level for the issue since February 2021.
Oracle's Q4 Beat: After the close on Monday, the company reported quarterly earnings of $1.54 per share, which beat the analyst consensus estimate of $1.37 by 12.41%.
This is unchanged from the same period last year. The company reported quarterly sales of $11.8 billion, which beat the analyst consensus estimate of $11.67 billion by 1.11%. This is a 5.1% increase over sales of $11.23 billion in the same period last year.
PreMarket Prep's Take On Oracle: When the issue was being covered on the show Tuesday, it was trading at the $71.50 area and had already established its after-hours high of $73.70.
Co-host Dennis Dick was the first to comment on the issue.
“Here is a real stock that makes real money, with real cash flows,” he said.
“I was hoping to buy it at $60, but it did not get there. If I had it short-term, I would sell it.”
The author of this article warned investors the issue may not revisit the premarket high. Instead, investors were alerted to pay attention to the previous daily highs, with the first being $72.15 as a possible exit level.
ORCL Price Action: After a much higher opening price ($72 vs. $64.05), Oracle rallied to $72.43 and reversed course.
As of 1:30 p.m. EST, the ensuing decline found support well above the top of Monday’s range ($66.10) at $69.02.
It has rebounded back to the $70 area and is attempting to post its first close over that level since June 8, when it ended the session at $71.38.
Watch the discussion on Oracle on Tuesday's PreMarket Prep:
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