Oracle (ORCL) closed at $247.71 in the latest trading session, marking a +1.06% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.33%.
Heading into today, shares of the software maker had gained 16.59% over the past month, outpacing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.
Market participants will be closely following the financial results of Oracle in its upcoming release. On that day, Oracle is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 5.76%. Meanwhile, the latest consensus estimate predicts the revenue to be $15.01 billion, indicating a 12.83% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.73 per share and a revenue of $66.57 billion, demonstrating changes of +11.61% and +15.97%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. Oracle is currently a Zacks Rank #3 (Hold).
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 36.42. This indicates a premium in contrast to its industry's Forward P/E of 26.57.
One should further note that ORCL currently holds a PEG ratio of 2.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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