In the latest trading session, Oracle (ORCL) closed at $76.47, marking a -1.14% move from the previous day. This move lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.44%.
Coming into today, shares of the software maker had gained 7.62% in the past month. In that same time, the Computer and Technology sector gained 10.34%, while the S&P 500 gained 8.25%.
Investors will be hoping for strength from Oracle as it approaches its next earnings release. In that report, analysts expect Oracle to post earnings of $1.07 per share. This would mark year-over-year growth of 3.88%. Our most recent consensus estimate is calling for quarterly revenue of $11.47 billion, up 17.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $49.73 billion, which would represent changes of +6.33% and +17.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Oracle is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 14.85. Its industry sports an average Forward P/E of 30.84, so we one might conclude that Oracle is trading at a discount comparatively.
We can also see that ORCL currently has a PEG ratio of 1.86. 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. ORCL's industry had an average PEG ratio of 2.21 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% 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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