Oracle (ORCL) has experienced a 32% gain year-to-date, surpassing the growth of the Zacks Computer and Technology sector. This success is attributed to its innovations in the healthcare sector, which are expected to drive long-term growth. The company recently launched Oracle Health Insurance Data Exchange Cloud Service, a SaaS solution aimed at simplifying data exchange for healthcare insurers and accelerating the processing of new data formats.
Key features of this service include user-defined data transformation and validation, real-time visibility and control over data processing, and compliance with regulatory updates. The company’s new healthcare capabilities are expected to boost its cloud services and licensing revenue in the coming quarters, with a projected growth of 19.9% for fiscal 2025.
Oracle’s SuiteSuccess Healthcare Edition and the RevElate patient accounting system are designed to improve business efficiency, support HIPAA compliance, and streamline revenue cycle workflows. However, the company faces tough competition from other giants in the cloud healthcare market. Despite this, Oracle’s ability to generate strong cash flow and its promising financial outlook make it an attractive option for investors.
As of February 29, 2024, Oracle had cash and marketable securities totaling $9.9 billion, showcasing its financial strength. The Zacks Consensus Estimate for its earnings per share for the first quarter of fiscal 2024 is $1.32, with a slight increase in the consensus mark for fiscal 2025 earnings. Overall, Oracle’s advancements in the healthcare sector and its potential for growth make it a compelling investment opportunity despite the competitive landscape it faces.
Article Source
https://www.zacks.com/stock/news/2293796/oracles-orcl-healthcare-expansion-to-aid-long-term-growth
