In the latest close session, Oracle (ORCL) was up +1.05% at $252.68. The stock outpaced the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the software maker had gained 8.45% in the past month. In that same time, the Computer and Technology sector gained 6.34%, while the S&P 500 gained 2.71%.
Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. The company is expected to report EPS of $1.47, up 5.76% from the prior-year quarter. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.73 per share and revenue of $66.6 billion. These totals would mark changes of +11.61% and +16.02%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. Oracle is currently a Zacks Rank #3 (Hold).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 37.16. This denotes a premium relative to the industry average Forward P/E of 24.08.
Meanwhile, ORCL's PEG ratio is currently 2.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ORCL's industry had an average PEG ratio of 2.15 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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