In the latest close session, Oracle (ORCL) was up +2.08% at $159.85. This move outpaced the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
The software maker's shares have seen a decrease of 23.5% over the last month, not keeping up with the Computer and Technology sector's loss of 1.09% and the S&P 500's loss of 0%.
The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. 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 project earnings of $7.46 per share and a revenue of $66.94 billion, demonstrating changes of +23.71% and +16.62%, respectively, from the preceding year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has moved 0.68% higher. Oracle is currently a Zacks Rank #3 (Hold).
Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 21. Its industry sports an average Forward P/E of 18.8, so one might conclude that Oracle is trading at a premium comparatively.
We can also see that ORCL currently has a PEG ratio of 1.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 1.51 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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