Oracle (ORCL) closed at $87.74 in the latest trading session, marking a -0.89% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
Prior to today's trading, shares of the software maker had gained 2.44% over the past month. This has lagged the Computer and Technology sector's gain of 14.37% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from Oracle as it approaches its next earnings release. The company is expected to report EPS of $1.19, up 5.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.39 billion, up 17.9% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $49.74 billion, which would represent changes of +0.2% and +17.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Oracle is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Oracle currently has a Forward P/E ratio of 18.04. This represents a discount compared to its industry's average Forward P/E of 28.24.
Also, we should mention that ORCL has a PEG ratio of 2.26. 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 2.08 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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