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In the latest market close, Oracle (ORCL) reached $162.95, with a +0.42% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.1%. Elsewhere, the Dow saw a downswing of 0.21%, while the tech-heavy Nasdaq appreciated by 0.72%.
Shares of the software maker have appreciated by 21.15% over the course of the past month, outperforming the Computer and Technology sector's gain of 14.29% and the S&P 500's gain of 9.86%.
Market participants will be closely following the financial results of Oracle in its upcoming release. The company is forecasted to report an EPS of $1.64, showcasing a 0.61% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.54 billion, indicating an 8.8% increase compared to the same quarter of the previous year.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $6.03 per share and revenue of $57.04 billion. These results would represent year-over-year changes of +8.45% and +7.7%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. As of now, Oracle holds a Zacks Rank of #3 (Hold).
With respect to valuation, Oracle is currently being traded at a Forward P/E ratio of 26.89. This indicates a discount in contrast to its industry's Forward P/E of 28.02.
Meanwhile, ORCL's PEG ratio is currently 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 2.37 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.