NEW YORK, April 25, 2011 /PRNewswire/ -- Oracle Corporation (ORCL: $35) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. ORCL carries S&P's highest investment recommendation of 5-STARS, or Strong Buy.
"Oracle is among the best-positioned technology vendors in our coverage universe, with leading market shares in database, middleware, and business applications," said Zaineb Bokhari, Information Technology Equity Analyst at Standard & Poor's Equity Research. "Through acquisitions, the company has broadened its product portfolio, greatly expanded its customer base and enjoys some of the widest operating margins among its software peers."
Ms. Bokhari observes that the company has strong cash flows, supported by a very lucrative and recurring base of revenue derived from maintenance and support for its software products. She says this cash flow has been used to fund one of the most active acquisition programs in the technology space.
"Despite its multitude of acquisitions, Oracle has managed to avoid the pitfalls that have befallen software roll-ups from past decades," added Ms. Bokhari. "We think a combination of strong cash flows, astute management, and disciplined acquisition and integration practices have helped the company. We also believe Oracle benefits from having a deep management bench with a clear strategic vision at the helm."
To view a video of Ms. Bokhari discussing ORCL, paste the following link into your browser.
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