Oracle (ORCL) closed at $118.69 in the latest trading session, marking a -1.72% move from the prior day. This move lagged the S&P 500's daily gain of 0.24%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 7.84%.
Prior to today's trading, shares of the software maker had lost 1.04% over the past month. This has lagged the Computer and Technology sector's gain of 3.46% and the S&P 500's gain of 3.39% in that time.
Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. The company is expected to report EPS of $1.14, up 10.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.45 billion, up 8.82% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.51 per share and revenue of $53.85 billion. These totals would mark changes of +7.62% and +7.8%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Oracle. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. Oracle is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 21.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 29.98.
We can also see that ORCL currently has a PEG ratio of 2.74. 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. The Computer - Software was holding an average PEG ratio of 2.53 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
