There’s an old Wall Street saying that they don’t ring a bell at the top. That’s also true of the bottom for the stock market, a sector, or individual companies. The best that investors can do is look for companies that are growing during a tough time – and increasing their market share.
These companies will survive, and likely be rewarded for their growth, even if that takes time to play out with a new bull market.
One company we’ve seen play to this trend is
Oracle (ORCL). The database giant has made tremendous strides in the cloud services space. And in the most recent quarter, Oracle managed to grow revenues by 9 percent, even adjusting for the headwinds in the currency markets.
Even with an initial jump in shares following the news, the stock calmed down, and still remains down nearly 20 percent this year. But it’s starting to look cheap, at 16 times forward earnings.
Action to take: Investors may like shares here, with an eye towards buying an initial stake now, and adding more on any further drop. Shares yield 1.6 percent at current prices.
For traders, the stock has been trending up since October, and will likely continue to do so, even at a slow rate. The June 2023 $85 calls, last going for about $5.15, can potentially deliver high double-digit returns in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.
