Oracle (ORCL) closed at $277.18 in the latest trading session, marking a -4.85% move from the prior day. This move lagged the S&P 500's daily gain of 1.07%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 1.37%.
The software maker's stock has dropped by 5.62% in the past month, falling short of the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.63, signifying a 10.88% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $16.15 billion, up 14.84% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.78 per share and revenue of $66.87 billion. These totals would mark changes of +12.44% and +16.5%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.41% increase. Oracle presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 42.96. Its industry sports an average Forward P/E of 27.14, so one might conclude that Oracle is trading at a premium comparatively.
One should further note that ORCL currently holds a PEG ratio of 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.07 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
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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