10 Best Information Technology Services Stocks to Buy

2. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Holders: 96

Oracle Corporation (NASDAQ:ORCL) has established itself as a global leader in business IT solutions. The company recently announced its financial results for the fourth quarter and full fiscal year 2024. Oracle Corporation (NASDAQ:ORCL) reported total Q4 revenue of $14.3 billion, marking a 3% year-over-year increase. Revenue from cloud services and license support saw a robust 9% growth, reaching $10.2 billion, underscoring the strength of Oracle’s cloud offerings. Additionally, the company noted a substantial 44% increase in Q4 total remaining performance obligations (RPO), totaling $98 billion.

Following these results, analysts have adjusted their stock price targets for Oracle Corporation (NASDAQ:ORCL). Deutsche Bank analyst Brad Zelnick raised the firm’s price target to $165 from $150, maintaining a Buy rating. This adjustment reflects the incorporation of Oracle’s Q4 results and guidance into Deutsche Bank’s model, along with updated FY2025-26 revenue and non-GAAP EPS estimates. BMO Capital analyst Keith Bachman also increased the ORCL stock price target to $160 from $142, while maintaining a Market Perform rating. Bachman highlighted Oracle’s strong cloud infrastructure bookings over two consecutive quarters and a favorable FY2025 revenue guide, which stands out compared to the generally tepid results in the broader software and IT services sector. He also noted that Oracle Corporation (NASDAQ:ORCL)’s unique combination of cloud infrastructure and enterprise software places it in an enviable market position.

Here’s what Aristotle Atlantic Partners, LLC, said about Oracle Corporation (NYSE:ORCL) in its Q3 2023 investor letter:

“Oracle Corporation (NYSE:ORCL) provides products and services that address enterprise information technology (IT) environments. The company’s products and services include enterprise applications and infrastructure offerings that are delivered worldwide through a variety of flexible and interoperable IT deployment models. The company operates in three segments: cloud and license business, hardware, and services.

We believe Oracle’s cloud infrastructure product, OCI 2.0, continues to demonstrate strong revenue growth over several quarters. Additionally, we see the rapid growth of artificial intelligence (AI) computing needs as being a differentiated growth driver for Oracle. We believe that Oracle will continue to drive positive outcomes for the Cerner business through a better margin structure, as well as topline sales synergies.”