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Oracle (ORCL) Gains But Lags Market: What You Should Know

·3 min read

Oracle (ORCL) closed the most recent trading day at $74.49, moving +0.89% from the previous trading session. This change lagged the S&P 500's 1.83% gain on the day. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.

Heading into today, shares of the software maker had lost 3.83% over the past month, outpacing the Computer and Technology sector's loss of 9.85% and the S&P 500's loss of 5.51% 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 September 12, 2022. On that day, Oracle is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 3.88%. Our most recent consensus estimate is calling for quarterly revenue of $11.47 billion, up 17.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $49.73 billion, which would represent changes of +6.33% and +17.17%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Oracle. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Oracle is currently a Zacks Rank #2 (Buy).

Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 14.17. This valuation marks a discount compared to its industry's average Forward P/E of 26.53.

Also, we should mention that ORCL has a PEG ratio of 1.77. 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. The Computer - Software industry currently had an average PEG ratio of 2 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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