In the latest trading session, Oracle (ORCL) closed at $55.43, marking a -1.26% move from the previous day. This move lagged the S&P 500's daily loss of 0.86%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 1.13%.
Prior to today's trading, shares of the software maker had gained 3.03% over the past month. This has lagged the Computer and Technology sector's gain of 4.5% and the S&P 500's gain of 3.66% in that time.
Wall Street will be looking for positivity from ORCL as it approaches its next earnings report date. In that report, analysts expect ORCL to post earnings of $0.88 per share. This would mark year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $9.63 billion, up 0.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.88 per share and revenue of $40.07 billion, which would represent changes of +10.23% and +1.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ORCL. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. ORCL currently has a Zacks Rank of #4 (Sell).
Investors should also note ORCL's current valuation metrics, including its Forward P/E ratio of 14.48. Its industry sports an average Forward P/E of 33.03, so we one might conclude that ORCL is trading at a discount comparatively.
Meanwhile, ORCL's PEG ratio is currently 1.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.36 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 86, which puts it in the top 34% 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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