In the latest trading session, Oracle (ORCL) closed at $105.25, marking a -1.73% move from the previous day. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Heading into today, shares of the software maker had gained 11.4% over the past month, outpacing the Computer and Technology sector's gain of 11.14% and the S&P 500's gain of 3.78% in that time.
Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. This is expected to be June 12, 2023. The company is expected to report EPS of $1.58, up 2.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.74 billion, up 16.04% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Oracle. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Oracle currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 19.39 right now. For comparison, its industry has an average Forward P/E of 28.38, which means Oracle is trading at a discount to the group.
It is also worth noting that ORCL currently has a PEG ratio of 2.42. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 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.
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