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

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Oracle (ORCL) closed the most recent trading day at $79.38, moving +0.44% from the previous trading session. This change lagged the S&P 500's 0.99% gain on the day.

Heading into today, shares of the software maker had gained 5.42% over the past month, outpacing the Computer and Technology sector's loss of 2.99% and the S&P 500's loss of 0.26% in that time.

ORCL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.31, up 9.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.07 billion, up 6.01% from the prior-year quarter.

ORCL's full-year Zacks Consensus Estimates are calling for earnings of $4.46 per share and revenue of $40.32 billion. These results would represent year-over-year changes of +15.84% and +3.2%, respectively.

Investors might also notice recent changes to analyst estimates for ORCL. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ORCL currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ORCL is holding a Forward P/E ratio of 17.73. This valuation marks a discount compared to its industry's average Forward P/E of 35.42.

We can also see that ORCL currently has a PEG ratio of 2.09. 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. ORCL's industry had an average PEG ratio of 2.34 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 167, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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