The most recent trading session ended with Oracle (ORCL) standing at $168.54, reflecting a -0.84% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.47%. Meanwhile, the Dow gained 0.37%, and the Nasdaq, a tech-heavy index, lost 1.35%.
The software maker's shares have seen an increase of 7.38% over the last month, surpassing the Computer and Technology sector's loss of 4.34% and the S&P 500's loss of 1.78%.
The upcoming earnings release of Oracle will be of great interest to investors. The company is forecasted to report an EPS of $1.48, showcasing a 4.96% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.36 billion, indicating an 8.12% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.22 per share and a revenue of $57.65 billion, representing changes of +11.87% and +8.85%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Oracle is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 27.31. For comparison, its industry has an average Forward P/E of 28.76, which means Oracle is trading at a discount to the group.
Also, we should mention that ORCL has a PEG ratio of 2.69. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.12 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 146, this industry ranks in the bottom 42% of all industries, numbering over 250.
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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
