This Company Hitting New All-Time Highs Can Keep Going Significantly Higher

Usually, when a company breaks to new all-time highs, it’s likely going to trend higher for some time later. That’s especially true when a company can point to a positive trend such as growing earnings, a new product, or a new partnership.

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  • Investors who typically might not be interested in a great company at all-time highs can carve out an exception when a great company has made it clear their business is on the rise.

    That looks like the case with Oracle (ORCL). The database giant has made tremendous strides in transitioning to cloud services.

    Now, they’ve announced a partnership with OpenAI that will boost its ability to service AI-related infrastructure.

    The news caused shares to hit a new all-time high, and they’re now up about 12% over the past year.

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  • Meanwhile, shares trade at 20 times forward earnings, a slight discount to the overall market. If more growth is ahead, shares should be valued at a higher earnings multiple.

    Action to take: Investors may want to build a position at current prices, as Oracle is positioning itself as an AI play and can case further growth in the years ahead. At current prices, shares also pay a 1.3% dividend.

    For traders, the August $150 calls, last trading for about $1.75, could see mid-double-digit returns or better in the coming weeks on a further push higher 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 company mentioned in this article.

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