In the latest market close, Oracle (ORCL) reached $183.60, with a -1.54% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.32%, while the tech-heavy Nasdaq depreciated by 0.5%.
Prior to today's trading, shares of the software maker had gained 8.61% over the past month. This has outpaced the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 2.52% in that time.
Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 4.96% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.36 billion, up 8.12% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.22 per share and revenue of $57.65 billion, indicating changes of +11.87% and +8.85%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.52% downward. Oracle is currently a Zacks Rank #3 (Hold).
In terms of valuation, Oracle is presently being traded at a Forward P/E ratio of 29.96. This valuation marks a discount compared to its industry's average Forward P/E of 31.32.
We can additionally observe that ORCL currently boasts a PEG ratio of 2.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.4 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 39% of over 250 industries.
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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