Why Investors Shouldn’t Be Surprised By Oracle Corporation’s (NYSE:ORCL) 28% Share Price Surge
Those holding Oracle Corporation (NYSE:ORCL) shares would be relieved that the share price has rebounded 28% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. The last 30 days bring the annual gain to a very sharp 26%.
Following the firm bounce in price, Oracle’s price-to-earnings (or “P/E”) ratio of 36.2x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 17x and even P/E’s below 10x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
