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The most recent trading session ended with Oracle (ORCL) standing at $138.56, reflecting a +0.76% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.74%. Meanwhile, the Dow experienced a rise of 0.05%, and the technology-dominated Nasdaq saw an increase of 1.26%.
Heading into today, shares of the software maker had lost 5.67% over the past month, outpacing the Computer and Technology sector's loss of 6.23% and lagging the S&P 500's loss of 4.77% in that time.
Market participants will be closely following the financial results of Oracle in its upcoming release. It is anticipated that the company will report an EPS of $1.64, marking a 0.61% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $15.54 billion, reflecting an 8.8% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.03 per share and a revenue of $57.04 billion, demonstrating changes of +8.45% and +7.7%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 shifted 0.51% downward. Oracle is currently a Zacks Rank #4 (Sell).
Digging into valuation, Oracle currently has a Forward P/E ratio of 22.79. This valuation marks a discount compared to its industry's average Forward P/E of 25.66.
We can additionally observe that ORCL currently boasts a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.23.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.