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The latest trading session saw Oracle (ORCL) ending at $170.06, denoting a -0.19% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the software maker had gained 2.62% over the past month, outpacing the Computer and Technology sector's gain of 0.79% and lagging the S&P 500's gain of 2.87% in that time.
Market participants will be closely following the financial results of Oracle in its upcoming release. On that day, Oracle is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 4.96%. Alongside, our most recent consensus estimate is anticipating revenue of $14.36 billion, indicating an 8.12% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.22 per share and revenue of $57.65 billion. These totals would mark changes of +11.87% and +8.85%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Oracle. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.44% decrease. Oracle is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Oracle is currently exchanging hands at a Forward P/E ratio of 27.38. This valuation marks a discount compared to its industry's average Forward P/E of 31.41.
Investors should also note that ORCL has a PEG ratio of 2.69 right now. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.31.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.