Lookout for tech stocks Price/Earnings-Growth ratio (PEG): Oracle Corporation (NYSE:ORCL), Marvell Technology Group Ltd. (NASDAQ:MRVL), Ciena Corporation (NYSE:CIEN)

On Friday’s Morning, Oracle Corporation (NYSE:ORCL)’s Current Analysis & Performances to Discover

Shares of Oracle Corporation flaunt 1.22% to reach at $49.80 during recent trading session. The company has experienced volume of 10,358,553 shares while on average the company has a capacity of trading 20.81M share.

Technical Look at Oracle Corporation (NYSE:ORCL): (Is this is BUY or SELL time?)

The Company holds the market capitalization of $174.10B along with 3.54B outstanding shares. Currently the stock price is moving -6.88% off from the highest level of twelve months and +17.45% above from twelve months low. For the stock, price target value has been calculated at $52.53.

ORCL’s Snapshot:

Oracle Corporation (NYSE:ORCL) is showing weekly performance of 2.37%. Its yearly performance remained -3.76%. Year-to-date (YTD) performance of the stock was 8.97%. The stock “ORCL” was trading at a distance of 5.36% from 20 days simple moving average, and its distance from 50 days simple moving average is 4.73% while it has a distance of 4.59% from the 200 days simple moving average. The company has Relative Strength Index (RSI 14) of 64.44 along with Average True Range (ATR 14) of 1.16. Its weekly and monthly volatility is 1.45%, 2.41% respectively. The company’s beta value is at 1.06. Analysts mean recommendation for the stock is 2.50. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Oracle Corporation (NYSE:ORCL)’s P/E ratio is 18.43. The company’s price to sales ratio for trailing twelve months is 4.38 and price to book ratio for most recent quarter is 5.99, whereas price to cash per share for the most recent quarter is 3.52. ORCL’s price to free cash flow for trailing twelve months is 16.19. Its quick ratio for most recent quarter is N/A along with current ratio for most recent quarter of 2.80. Total debt to equity ratio of the company for most recent quarter is 1.90 whereas long term debt to equity ratio for most recent quarter is 1.69. Oracle Corporation has a Return on Assets of 3.00%. The company currently has a Return on Equity of 9.80% and Return on Investment of 10.80%.

Marvell Technology Group Ltd. (NASDAQ:MRVL)’s Analysis & Performances to Discover

Marvell Technology Group Ltd. (NASDAQ:MRVL) display a change of 6.00% in final minutes of Friday’s trading session after which it closed the day’ session at $18.55. The general volume in the last trading session was 25,252,736 shares.

Insider & Institutional Ownership

99.60% of Marvell Technology Group Ltd. shares are owned by institutional investors. Comparatively, 0.80% of Marvell Technology Group Ltd. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

MRVL’s Current Performance breakdown (SMA20, SMA50 & SMA200): 

Marvell Technology Group Ltd. (NASDAQ:MRVL) has seen its SMA20 which is now 12.05%. In looking the SMA 50 we see that the stock has seen a 16.11% while it has a distance of -3.64% from the 200 days simple moving average.

Analysts suggest mean rating of 1.80. Analyst opinion is vital in valuing stocks. Analyst rating score as published on FINVIZ are rated on a 1 to 5 scale. 1 is equivalent to a buy rating, 3 a hold rating, and 5 a sell rating.

Marvell Technology Group Ltd. (NASDAQ:MRVL)’s ATR reading of 0.58. A stock’s Average True Range (ATR) is the difference between the high and low price on any given day. It reveals information about how volatile a stock is. Large ranges indicate high volatility and small ranges indicate low volatility. The range is measured the same way for options and commodities – high minus low – as they are for stocks. By seeing it past volatility it showed that volatility for the week is 3.25% while volatility for the month is 3.25%.

Ciena Corporation (NYSE:CIEN)’s Analysis & Performances to Discover

Shares of Ciena Corporation (NYSE:CIEN) showing a change of 0.94% over the last week and performed 4.58% over the last month while its year to date (YTD) performance revealed an activity trend of 16.46%. The stock price closed last trading at $39.86. Ciena Corporation (CIEN) negotiated 2,341,671 shares and maintained an average volume of 3.41M shares.

The price target set for the stock is $38.13 and this sets up an interesting set of potential movement for the stock, according to data from FINVIZ’s analysis. With approx. 154.61M shares in outstanding, the company has a market cap of $6.11B as per the current valuation. Calculating the market cap is easy. Market capitalization is simply the value that can get when multiply all the outstanding shares of a stock by the price of a single share. CIEN has a beta of 1.02.

What is PEG Ratio?

PEG ratio or Price/Earnings-Growth ratio is an attempt to normalize the P/E ratio with the expected earnings growth rate of the company.

WHY IT MATTERS:

The PEG ratio acts as a measure of value that takes into account future growth. Using this metric, investors can gauge whether high-growth stocks may be undervalued, even if they don’t appear so with the more common P/E ratio.

Typically P/E ratios are backward looking while the earnings growth rate is a forward looking metric. Future P/E ratio will be different than the one we use today. You could project a future P/E ratio if you wish, but this will introduce further uncertainty in the calculations. Still, many investors are fond of using the concept of Forward P/E and Forward PEG ratio. I strongly advise against this.

Negative PEG Ratio Connotation

A negative PEG ratio does not imply that the stock is a bad investment. It just means that you need to consider other ways of looking at the stock before you can judge if this is a good investment or not.

Is It Overvalued? Look at the Current PEG Ratio of ORCL, MRVL and CIEN (PEG ratio used to determine a stock’s value while taking into account the earnings’ growth.)

ORCL has a PEG ratio of 1.84, MRVL has a PEG ratio of 4.45 and CIEN has a PEG ratio of 4.30.

Lewis Demko

This is Lewis Demko and I like to introduce myself as an adviser, in the Technology Sector. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the technology sector for over 9 years in the developing countries by introducing new phases and ways to improve in the technology sector. I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new technology and minimizing the time of development.