Oracle (ORCL) ended the recent trading session at $149.25, demonstrating a +2.65% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.04%. Elsewhere, the Dow saw a downswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.36%.
Prior to today's trading, shares of the software maker had lost 11.65% lagged the Computer and Technology sector's loss of 5.15% and the S&P 500's loss of 1.33%.
The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. The company is expected to report EPS of $1.7, up 15.65% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $16.89 billion, reflecting a 19.54% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.45 per share and revenue of $66.95 billion. These totals would mark changes of +23.55% and +16.63%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. As of now, Oracle holds a Zacks Rank of #3 (Hold).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 19.51. This represents a premium compared to its industry average Forward P/E of 17.17.
Investors should also note that ORCL has a PEG ratio of 1.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.48.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 33% echelons 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.
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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