In the latest market close, Oracle (ORCL) reached $169.14, with a +1.54% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.81%.
The software maker's shares have seen an increase of 11.57% over the last month, surpassing the Computer and Technology sector's gain of 7.05% and the S&P 500's gain of 4.61%.
Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. In that report, analysts expect Oracle to post earnings of $1.64 per share. This would mark year-over-year growth of 0.61%. Meanwhile, our latest consensus estimate is calling for revenue of $15.54 billion, up 8.8% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. At present, Oracle boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 25.09. This denotes no noticeable deviation relative to the industry's average Forward P/E of 25.09.
One should further note that ORCL currently holds a PEG ratio of 2.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.35 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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