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Oracle (ORCL) ended the recent trading session at $158.31, demonstrating a +1.28% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.
The software maker's stock has dropped by 7.9% in the past month, falling short of the Computer and Technology sector's loss of 3.84% and the S&P 500's loss of 3.31%.
Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 4.96% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.36 billion, indicating an 8.12% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.23 per share and revenue of $57.65 billion. These totals would mark changes of +12.05% and +8.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% downward. Oracle presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 25.1. This represents a discount compared to its industry's average Forward P/E of 29.67.
One should further note that ORCL currently holds a PEG ratio of 2.47. 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 2.29 at yesterday's closing price.