Oracle (ORCL) closed at $234.62 in the latest trading session, marking a -5.8% move from the prior day. This change lagged the S&P 500's 0.59% loss on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 1.46%.
Prior to today's trading, shares of the software maker had gained 2.27% lagged the Computer and Technology sector's gain of 3.91% and the S&P 500's gain of 2.49%.
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%. 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.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $6.73 per share and revenue of $66.6 billion. These results would represent year-over-year changes of +11.61% and +16.02%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Oracle is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 37.02. This indicates a premium in contrast to its industry's Forward P/E of 26.93.
One should further note that ORCL currently holds a PEG ratio of 2.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.05.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
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.
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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