Oracle (ORCL) closed at $87.49 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%.
Coming into today, shares of the software maker had gained 11.19% in the past month. In that same time, the Computer and Technology sector gained 3.03%, while the S&P 500 gained 2.74%.
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 $0.97 per share. This would mark year-over-year growth of 4.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.77 billion, up 4.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.64 per share and revenue of $42.28 billion. These totals would mark changes of -0.64% and +4.45%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ORCL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.1% lower. ORCL currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ORCL is currently trading at a Forward P/E ratio of 18.58. This represents a discount compared to its industry's average Forward P/E of 42.43.
Investors should also note that ORCL has a PEG ratio of 2.19 right now. 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. The Computer - Software industry currently had an average PEG ratio of 2.45 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% 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.
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