Many companies have been hit hard by the pandemic as they’ve failed to pivot to business strategies better suited to events. However, companies that have made the pivot have been faring better. Some are more profitable as a result, while some are still building out the infrastructure to succeed.
That’s leading to a number of companies showing growth now, or in future quarters, that may be being discounted by today’s fearful markets… creating a solid long-term buying opportunity.
One company still in transition is Oracle (ORCL). The software and database giant has been shifting towards cloud-based versions of its software. That can provide better functionality to users, while also increasing subscription-based revenue.
While still in progress, the moves have been promising so far, as seen in the company’s latest quarterly earnings.
Action to take: Shares are worth buying for the long haul near today’s prices, as the company continues to move to faster growth businesses with bigger profit margins. Plus, shares yield 1.7 percent at today’s prices.
For traders, the stock may dip a bit more in the coming weeks. But the January 2023 $70 calls, last going for about $4.00, can still deliver mid-double-digit returns as shares bounce higher after that. Traders may want to buy a partial stake, and try and buy more on a down day for shares.
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.