Oracle (ORCL) closed at $146.67 in the latest trading session, marking a -5.17% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq lost 1.51%.
Shares of the software maker have depreciated by 20.17% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.27%, and the S&P 500's gain of 0.93%.
Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.7, marking a 15.65% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.89 billion, up 19.54% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $66.94 billion, which would represent changes of +23.71% and +16.62%, respectively, from the prior year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.62% higher. Oracle presently features a Zacks Rank of #3 (Hold).
Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 20.73. This indicates a premium in contrast to its industry's Forward P/E of 18.28.
It is also worth noting that ORCL currently has a PEG ratio of 1.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.47 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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