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Oracle (ORCL) closed the most recent trading day at $71.92, moving -1.18% from the previous trading session. This move lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.15%.
Prior to today's trading, shares of the software maker had lost 1.65% over the past month. This has lagged the Computer and Technology sector's loss of 1.03% and the S&P 500's gain of 0.89% in that time.
Oracle will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.36, down 11.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.65 billion, up 3.74% from the prior-year quarter.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $4.76 per share and revenue of $42.24 billion. These results would represent year-over-year changes of +1.93% and +4.36%, respectively.
Investors should also note any recent changes to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Oracle is currently a Zacks Rank #4 (Sell).
Digging into valuation, Oracle currently has a Forward P/E ratio of 15.28. This represents a discount compared to its industry's average Forward P/E of 27.68.
Also, we should mention that ORCL has a PEG ratio of 1.91. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.3 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 151, which puts it in the bottom 41% 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.
To follow ORCL in the coming trading sessions, be sure to utilize Zacks.com.
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