Oracle (ORCL) closed at $141.31 in the latest trading session, marking a -4.57% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.04%. Meanwhile, the Dow lost 1.66%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Prior to today's trading, shares of the software maker had lost 16.42% lagged the Computer and Technology sector's gain of 0.34% and the S&P 500's gain of 1.75%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.7, reflecting a 15.65% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.89 billion, indicating a 19.54% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.45 per share and a revenue of $66.94 billion, signifying shifts of +23.55% and +16.62%, respectively, from the last year.
Investors should also take note of any recent adjustments 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate has shifted 0.63% upward. At present, Oracle boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Oracle is holding a Forward P/E ratio of 19.87. This indicates a premium in contrast to its industry's Forward P/E of 16.72.
One should further note that ORCL currently holds a PEG ratio of 1.04. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.5.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.
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.
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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