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The most recent trading session ended with Oracle (ORCL) standing at $168.54, reflecting a -0.84% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.47%. Meanwhile, the Dow gained 0.37%, and the Nasdaq, a tech-heavy index, lost 1.35%.
The software maker's shares have seen an increase of 7.38% over the last month, surpassing the Computer and Technology sector's loss of 4.34% and the S&P 500's loss of 1.78%.
The upcoming earnings release of Oracle will be of great interest to investors. The company is forecasted to report an EPS of $1.48, showcasing a 4.96% upward movement from the corresponding quarter of the prior 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.22 per share and a revenue of $57.65 billion, representing changes of +11.87% and +8.85%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Oracle is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 27.31. For comparison, its industry has an average Forward P/E of 28.76, which means Oracle is trading at a discount to the group.
Also, we should mention that ORCL has a PEG ratio of 2.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 42% of all industries, numbering over 250.