The most recent trading session ended with Oracle (ORCL) standing at $149.29, reflecting a -0.96% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.64%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, lost 0.74%.
The software maker's stock has climbed by 17.51% in the past month, exceeding the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38%.
Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.64, signifying a 0.61% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.54 billion, indicating an 8.8% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.03 per share and a revenue of $57.04 billion, representing changes of +8.45% and +7.7%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 0.16% downward. Oracle is currently a Zacks Rank #4 (Sell).
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 24.98. For comparison, its industry has an average Forward P/E of 27.05, which means Oracle is trading at a discount to the group.
It's also important to note that ORCL currently trades at a PEG ratio of 2.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.3.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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