Oracle ORCL recently made a slew of announcements focused on strengthening its software portfolio with robust machine learning ("ML") and artificial intelligence ("AI") capabilities. The company announced new functionalities to its Enterprise Performance Management ("EPM") and Enterprise Resource Planning ("ERP") cloud-based offerings.
The company also extended functionality of its Human Capital Management ("HCM") cloud platform to provide engaging employee and manager experience, with smart Digital Assistants and enhanced HR Help Desk.
The company's DataFox buyout is enabling it to improve its cloud-based data engine with AI capabilities.
With DataFox, the company is anticipated to strengthen its Customer Experience ("CX") cloud offering. We believe DataFox to be a lucrative addition to Oracle's cloud-based portfolio. Enhanced Portfolio to Aid Top-Line Growth
Oracle is striving to enhance the functionalities of cloud-based applications, which bode well. The enhanced portfolio, aimed at providing intelligent engaging experience to its clientele, holds promise.
Robust adoption of its product portfolio and ongoing cloud-based momentum bode well for the company's top line. Moreover, synergies from acquisitions of Moat, Crosswise, AddThis, BlueKai, Datalogix, and Grapeshot have fortified Oracle's software platforms.
According to Gartner, the global Software-as-a-Service (SaaS) market is expected to increase at a CAGR of 17.8% from $58.8 billion in 2017 to reach $113.1 billion in 2021. We believe the company is well poised to capitalize on growth opportunities of its domain on the back of its ongoing efforts in the domain. What Investors Should Know?
Oracle's move to ramp up its cloud offerings is in sync with the company's evolving CX strategy. This initiative is expected to strengthen its competitive position against peers like salesforce.com CRM
, SAP SAP
, Adobe ADBE
, among others.
Per Gartner as revealed by Oracle, the use of advanced personalization engines (utilized to be familiar with evolving customer tastes) is anticipated to drive profit levels of digital businesses by up to 15% by 2020.
Per a recen t report
by MarketsAndMarkets, the AI market is expected to hit $190.61 billion by 2025 at a CAGR of 36.6% from $21.46 billion in 2018. Given the huge growth prospect in the industry, the key players are all putting their best foot forward to capture a major share of the projected revenue growth.
Moreover, Oracle's growing clout in overall cloud based software domain, primarily in ERP reinforces the company's growth prospects. Per ResearchAndMarkets data, global ERP software market is envisioned to grow to $74.2 billion by 2026 from $34.1 billion in 2017 witnessing a CAGR of 9%. We believe robust adoption of NetSuite will aid Oracle to strengthen presence in the ERP market. Consolidating Applications Market: A Woe
Consolidating applications market is fueling competition in the software sector, which is not conducive to the company's growth prospects at least in the near term.Moreover, stiff competition in the cloud is anticipated to limit margin expansion. Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report salesforce.com, inc. (CRM): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research