Investors are shying away from tech investments as interest rates rise. However, there are many ways to profit in tech in the years ahead, and finding reasonably-priced companies that can grow market share at today’s prices should fare well.
While the market has flirted with artificial intelligence (AI) stocks so far this year, that space is far from proven. A more proven space is cloud storage, which continues to grow, even as tech firms slow down and announce layoffs.
The cloud division at Oracle (ORCL) makes the database software company look compelling now. One analyst even upgraded the stock based on the potential earnings power of its cloud unit.
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Oracle has been a relatively strong performer in the tech space, with shares up 7 percent over the past year, amid a sea of red for most other tech names. And revenues are up 18 percent, with room for more growth as the company builds out its cloud division.
Action to take: Shares are reasonably valued at 15 times forward earnings. Plus, Oracle is a dividend growth company, with the stock yielding 1.8 percent right now. It’s a tech name worth accumulating at or near current prices.
For traders, the June $95 calls, last going for about $2.10, offer mid-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.