Oracle (ORCL) closed the most recent trading day at $236.15, moving -1.94% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.21%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq lost 0.25%.
Coming into today, shares of the software maker had lost 21.81% in the past month. In that same time, the Computer and Technology sector gained 6.68%, while the S&P 500 gained 4.36%.
The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. In that report, analysts expect Oracle to post earnings of $1.63 per share. This would mark year-over-year growth of 10.88%. Our most recent consensus estimate is calling for quarterly revenue of $16.15 billion, up 14.84% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.8 per share and a revenue of $66.89 billion, demonstrating changes of +12.77% and +16.54%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.42% rise in the Zacks Consensus EPS estimate. As of now, Oracle holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Oracle is holding a Forward P/E ratio of 35.42. This valuation marks a premium compared to its industry average Forward P/E of 24.64.
Also, we should mention that ORCL has a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 1.87 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.
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Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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