Oracle Corporation (ORCL) Stumbles but Deserves Forgiveness

All of that said, I’m still positive about Oracle’s prospects for the next quarter, especially since corporate enterprises will have more clarity about government spending. And it certainly didn’t help Oracle that the last day of the sequester fell into the third quarter, either. Nevertheless, Salesforce and IBM are also waiting for those dollars to start flowing in, which means that Oracle Corporation (NASDAQ:ORCL) needs to differentiate itself better to win more business.

The good news, though, is that Oracle is now able to better leverage its cloud portfolio against the competition. With Acme Packet’s product portfolio, which includes the Net-Net line of devices, Oracle now has a one-stop-shop advantage that neither IBM nor Salesforce can duplicate. And investors shouldn’t ignore how cheap the stock is now, at $32.

With 2013 earnings estimates being $2.69 per share, the stock is now trading at a P/E of just 12, or 6 below the S&P 500 average of stocks in Oracle Corporation (NASDAQ:ORCL)’s category. In a market where stocks often take off and never look back, Oracle is now giving opportunistic investors a second change to buy. At this level, it’s too good of a deal to pass up.

The article Oracle Stumbles but Deserves Forgiveness originally appeared on Fool.com.

Fool contributor Richard Saintvilus has no position in any stocks mentioned. The Motley Fool recommends Acme Packet and salesforce.com and owns shares of IBM and Oracle.

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