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

Zacks Equity Research

In the latest trading session, Oracle (ORCL) closed at $56.59, marking a +0.27% move from the previous day. This change outpaced the S&P 500's 0.16% gain on the day. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.26%.

Coming into today, shares of the software maker had lost 0.05% in the past month. In that same time, the Computer and Technology sector gained 4.79%, while the S&P 500 gained 4.12%.

ORCL will be looking to display strength as it nears its next earnings release. On that day, ORCL is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 10%. Our most recent consensus estimate is calling for quarterly revenue of $9.63 billion, up 0.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.89 per share and revenue of $40.12 billion, which would represent changes of +10.51% and +1.51%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ORCL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. ORCL is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note ORCL's current valuation metrics, including its Forward P/E ratio of 14.51. Its industry sports an average Forward P/E of 29.77, so we one might conclude that ORCL is trading at a discount comparatively.

Investors should also note that ORCL has a PEG ratio of 1.49 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.28 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 41, which puts it in the top 17% 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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