Rackspace Hosting, Inc. (RAX), Oracle Corporation (ORCL): Should We Take Advantage of This Stock’s Significant Drop?

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Rackspace seems to be a decent growing business for investors to invest in. However, with a mid-teen EV multiple, Rackspace is not cheap at its current price. Among the three, I prefer Oracle Corporation (NASDAQ:ORCL) the most due to its lowest valuation. What I like most about Oracle is the stickiness of its clients to Oracle Corporation (NASDAQ:ORCL)’s services, as it takes quite some time and money for big corporations to make changes in IT service providers.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Rackspace Hosting. The Motley Fool owns shares of Oracle.

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