Yahoo Finance Oracle's (ORCL) Healthcare Expansion to Aid Long-Term Growth
Oracle ORCL has gained 32% year to date, outperforming the Zacks Computer and Technology sector’s growth of 22.4%.
This outperformance can be attributed to the constant innovations in the healthcare sector, which is expected to continue and aid long-term growth.
This Zacks Rank #3 (Hold) company recently introduced the Oracle Health Insurance Data Exchange Cloud Service, a new SaaS solution designed to simplify and modernize data exchange for healthcare insurers. This service enables insurers to onboard evolving data formats more efficiently and create custom data mapping and validation rules, thereby speeding up the processing of new data formats. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key features of the Oracle Health Insurance Data Exchange Cloud Service include user-defined data transformation and validations, which empower business users to create custom data mappings without lengthy IT projects. It also provides real-time visibility and control over data processing, ensuring data integrity throughout the exchange process.
Additionally, the service helps insurers remain compliant with regulatory updates by supporting changes in data format requirements from entities like CMS.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
Oracle Healthcare’s New Capabilities to Boost Cloud Services & License Revenues
ORCL has introduced new capabilities within its Healthcare division to help healthcare organizations enhance operational efficiency, empower employees and improve patient outcomes.
These advancements are expected to boost the company’s cloud services and license revenues in the upcoming quarters.
The Zacks Consensus Estimate for ORCL’s fiscal 2025 cloud services and license revenues is pegged at $47.23 billion, indicating year-over-year growth of 19.9%.
Oracle recently launched the SuiteSuccess Healthcare Edition, a new solution aimed at enhancing business efficiency and supporting HIPAA compliance for healthcare organizations. This industry-specific and pre-configured solution leverages cloud computing and artificial intelligence to streamline business processes, expand insights, improve decision-making, optimize resource allocation and enhance patient care.
Additionally, ORCL also launched a key component of the SuiteSuccess Healthcare Edition, the RevElate Patient Accounting system, which is electronic health record-agnostic and designed to standardize the integration of financial and clinical data. This system helps reduce errors, automate processes and eliminate repetitive manual tasks by automating revenue cycle workflows.
However, the company faces tough competition from giants like Bain Capital Specialty Finance’s BCSF AthenaHealth, Automatic Data Processing ADP and Salesforce CRM.
According to a report by 6sense, BCSF’s AthenaHealth has a market share of approximately 23% in the cloud healthcare market, followed by Oracle with 5%, ADP with 4.52% and CRM with 2.35%.
Conclusion
Oracle’s expanding health offerings make it an attractive pick for investors. However, strong competition remains a major concern for the company.
Oracle’s strong ability to generate solid cash flow is a major positive for the company. As of Feb 29, 2024, it had cash & cash equivalents and marketable securities of $9.9 billion compared with $8.69 billion as of Nov 30, 2023.
The Zacks Consensus Estimate for ORCL’s first-quarter fiscal 2024 earnings per share is pegged at $1.32, which has remained unchanged in the past 30 days. The consensus mark for fiscal 2025 earnings is pegged at $6.18 per share, which has increased 3 cents in the past 30 days.
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
Salesforce Inc. (CRM) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Bain Capital Specialty Finance, Inc. (BCSF) : Free Stock Analysis Report
