In the latest market close, Oracle (ORCL) reached $162.95, with a +0.42% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.1%. Elsewhere, the Dow saw a downswing of 0.21%, while the tech-heavy Nasdaq appreciated by 0.72%.
Shares of the software maker have appreciated by 21.15% over the course of the past month, outperforming the Computer and Technology sector's gain of 14.29% and the S&P 500's gain of 9.86%.
Market participants will be closely following the financial results of Oracle in its upcoming release. The company is forecasted to report an EPS of $1.64, showcasing a 0.61% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.54 billion, indicating an 8.8% increase compared to the same quarter of the previous year.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $6.03 per share and revenue of $57.04 billion. These results would represent year-over-year changes of +8.45% and +7.7%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. As of now, Oracle holds a Zacks Rank of #3 (Hold).
With respect to valuation, Oracle is currently being traded at a Forward P/E ratio of 26.89. This indicates a discount in contrast to its industry's Forward P/E of 28.02.
Meanwhile, ORCL's PEG ratio is currently 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 2.37 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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