Oracle (ORCL) closed at $178.18 in the latest trading session, marking a +2.47% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.91%.
Prior to today's trading, shares of the software maker had lost 11.96% lagged the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 0.71%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. The company is forecasted to report an EPS of $1.7, showcasing a 15.65% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $16.9 billion, reflecting a 19.63% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.42 per share and a revenue of $66.97 billion, signifying shifts of +23.05% and +16.68%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 1.73% higher. Right now, Oracle possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Oracle currently has a Forward P/E ratio of 23.44. This denotes a premium relative to the industry average Forward P/E of 21.11.
Also, we should mention that ORCL has a PEG ratio of 1.23. 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 average PEG ratio for the Computer - Software industry stood at 1.65 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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