Oracle Corp. (NYSE:ORCL) stock rose more than 1% Wednesday, outperforming a weak technology sector as investors attempted to extend the stock’s recent rebound. The Nasdaq fell 0.10%, while the S&P 500 gained 0.29%.
Oracle’s gains appear driven more by a technical rebound. The stock rose even as the technology sector fell about 0.8%, making Oracle a relative outperformer.
The broader market was mixed. Seven sectors advanced, with an advance-decline ratio of 1.8. Health care led with a 2.99% gain, followed by materials at 1.80%.
Oracle Pushes Deeper Into Healthcare AI
Oracle on Wednesday expanded its Oracle Health Clinical AI Agent with new tools for clinical documentation, coding and chart review.
The new capabilities, now available in the U.S., can suggest professional fee charge codes based on patient visits. Clinicians review and approve the recommendations before submission.
The AI agent can also review electronic health records and summarize relevant patient information, including medical history, lab results and medications.
In addition, Oracle added clinician-controlled dictation. The tool transcribes speech directly into clinical documentation for review and editing.
The new features build on previously announced AI tools for automated order creation. Oracle said its AI-powered note generation has saved physicians more than 400,000 hours across U.S. health organizations since its launch nearly two years ago.
Technical Analysis
Oracle traded 4.4% above its 20-day simple moving average of $138.14. However, it remained 2.4% below its 50-day SMA of $147.81 and more than 12% below its 100-day SMA of $164.35.
The longer-term trend remains bearish. Oracle’s 50-day SMA is below its 200-day SMA after a death cross formed in January. Its 20-day SMA also remains below the 50-day.
Meanwhile, the relative strength index stood at 49.45. That neutral reading suggests neither buyers nor sellers have firm control.
Resistance sits near $149, close to the 50-day SMA. Support is around $135.
Earnings And Analyst Outlook
Oracle’s next earnings report is estimated for Sept. 8. Analysts expect earnings of $1.67 per share, up from $1.47 a year earlier. Revenue is expected to reach $19.13 billion, compared with $14.93 billion a year earlier.
Oracle carries a Buy consensus rating with an average price forecast of $258.50.
UBS maintained a Buy rating on Aug. 6 but lowered its price forecast to $245. CLSA initiated coverage with a Hold rating and $145 price forecast on July 20. Bernstein maintained an Outperform rating and raised its price forecast to $325 on June 11.
Benzinga Edge Rankings
Oracle scores strongly on growth but remains weak on momentum and value, according to the Benzinga Edge scorecard.
Its Growth score stands at 95.91, compared with a Momentum score of 6.43 and a Value score of 19.07. The setup could improve if Oracle breaks above the $149 resistance area and rebuilds momentum.
ETF Exposure
Oracle has a 5.87% weighting in the iShares Expanded Tech-Software Sector ETF (BATS:IGV). It also carries a 5.28% weighting in the First Trust Nasdaq Technology Dividend Index Fund (NASDAQ:TDIV) and a 5.30% weighting in the FT Vest Technology Dividend Target Income ETF (NASDAQ:TDVI).
As a major holding, Oracle can be affected by inflows and outflows from these funds.
Price Action
Oracle shares were up 1.51% at $144.95 at the time of publication Wednesday, according to Benzinga Pro data.
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