Back to top

Image: Bigstock

Oracle (ORCL) Stock Moves -0.62%: What You Should Know

Read MoreHide Full Article

Oracle (ORCL - Free Report) closed at $74.19 in the latest trading session, marking a -0.62% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Prior to today's trading, shares of the software maker had lost 4.1% over the past month. This has lagged the Computer and Technology sector's gain of 4.81% and the S&P 500's gain of 3.65% in that time.

Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. The company is expected to report EPS of $1.07, up 3.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.47 billion, up 17.86% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.21 per share and revenue of $49.73 billion. These totals would mark changes of +6.33% and +17.17%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Oracle. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Oracle currently has a Zacks Rank of #2 (Buy).

Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 14.33. Its industry sports an average Forward P/E of 27.32, so we one might conclude that Oracle is trading at a discount comparatively.

We can also see that ORCL currently has a PEG ratio of 1.79. 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. ORCL's industry had an average PEG ratio of 2.11 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ORCL in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Oracle Corporation (ORCL) - free report >>

Published in