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Oracle (ORCL) Outpaces Stock Market Gains: What You Should Know

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Oracle (ORCL) closed the most recent trading day at $72.97, moving +1.64% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.31%. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the software maker had lost 0.97% over the past month. This has was narrower than the Computer and Technology sector's loss of 3.62% and the S&P 500's loss of 1.38% 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 June 13, 2022. In that report, analysts expect Oracle to post earnings of $1.36 per share. This would mark a year-over-year decline of 11.69%. Meanwhile, our latest consensus estimate is calling for revenue of $11.65 billion, up 3.74% from the prior-year quarter.

Any recent changes to analyst estimates for Oracle should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 0.02% lower within the past month. Oracle currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Oracle currently has a Forward P/E ratio of 13.83. This valuation marks a discount compared to its industry's average Forward P/E of 29.86.

Also, we should mention that ORCL has a PEG ratio of 1.73. 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 was holding an average PEG ratio of 2.32 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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