ETFs Set To Gain On Solid Fiscal Q1 Oracle Results

After the closing bell yesterday, software giant Oracle (ORCL - Free Report) reported better-than-expected fiscal first-quarter 2021 results. The company beat the Zacks Consensus Estimate for both earnings and revenues.

Earnings per share came in at 93 cents, beating the Zacks Consensus Estimate of 86 cents and improving 15% from the year-ago quarter. Revenues rose 1.6% year over year to $9.19 billion and came in above the estimated $9.15 billion. A recovery in client spending has led to robust performance in the quarter as remote work spurred demand for cloud services as well as traditional licensing business.

The solid trend in cloud computing business is likely to continue given that remote working is most likely to extend until the end of the year. In April, Oracle announced that Zoom Video (ZM - Free Report) has partnered with it to expand cloud capabilities in lieu of competitors such as Amazon's (AMZN - Free Report) AWS or Microsoft‘s (MSFT - Free Report) Azure.

Oracle shares jumped more than 4% in after-market trading. The company carries a Zacks Rank #3 (Hold) and has a Value Score of B. It belongs to a bottom-ranked Zacks Industry (top 24%).

ETFs in Focus

ETFs with the highest allocation to this software giant are likely to be big movers post-Oracle results. Below we have highlighted them:

iShares Expanded Tech-Software Sector ETF (IGV - Free Report)

This ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. The fund holds a basket of 100 securities with Oracle taking the fourth spot at 7.5% of total assets. It is popular with AUM of $5 billion and volume is good as it exchanges nearly 1 million shares a day. The product charges 46 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.

Invesco BuyBack Achievers ETF (PKW - Free Report)

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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