Yahoo Finance Oracle (ORCL) Exceeds Market Returns: Some Facts to Consider
Oracle (ORCL) ended the recent trading session at $119.28, demonstrating a +1.78% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, added 0.56%.
Heading into today, shares of the software maker had gained 1.2% over the past month, lagging the Computer and Technology sector's gain of 7.61% and the S&P 500's gain of 5.06% in that time.
The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. On that day, Oracle is projected to report earnings of $1.37 per share, which would represent a year-over-year decline of 17.96%. At the same time, our most recent consensus estimate is projecting a revenue of $14.56 billion, reflecting a 5.21% rise from the equivalent quarter last year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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, there's been no change in the Zacks Consensus EPS estimate. Oracle is currently a Zacks Rank #3 (Hold).
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 21. This valuation marks a discount compared to its industry's average Forward P/E of 27.56.
One should further note that ORCL currently holds a PEG ratio of 2.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.34 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Oracle Corporation (ORCL) : Free Stock Analysis Report
