In the latest close session, Oracle (ORCL) was up +1.24% at $255.67. The stock exceeded the S&P 500, which registered a loss of 0.49% for the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.65%.
Shares of the software maker have appreciated by 8.73% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's gain of 0.96%.
The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. The company is predicted to post an EPS of $1.47, indicating a 5.76% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $15.01 billion, indicating a 12.83% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.73 per share and a revenue of $66.59 billion, signifying shifts of +11.61% and +16.02%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Oracle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.31% upward. Currently, Oracle is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Oracle currently has a Forward P/E ratio of 37.52. This signifies a premium in comparison to the average Forward P/E of 23.97 for its industry.
We can also see that ORCL currently has a PEG ratio of 2.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.25.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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