Oracle (ORCL) closed at $234.96 in the latest trading session, marking a +2.48% move from the prior day. This change outpaced the S&P 500's 0.4% loss on the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Heading into today, shares of the software maker had gained 8.61% over the past month, outpacing the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97%.
The upcoming earnings release of Oracle will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.47, reflecting a 5.76% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $15.01 billion, indicating a 12.83% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $66.57 billion, which would represent changes of +11.44% and +15.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. Oracle currently has a Zacks Rank of #3 (Hold).
Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 34.13. This valuation marks a premium compared to its industry average Forward P/E of 25.74.
Investors should also note that ORCL has a PEG ratio of 2.71 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.37.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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