Back to top

Image: Bigstock

Oracle (ORCL) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Oracle (ORCL - Free Report) closed the most recent trading day at $73.83, moving -1.14% from the previous trading session. This change lagged the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.

Heading into today, shares of the software maker had lost 2.34% over the past month, outpacing the Computer and Technology sector's loss of 9.08% and the S&P 500's loss of 5.13% in that time.

Oracle will be looking to display strength as it nears its next earnings release, which is expected to be September 12, 2022. 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $49.73 billion, which would represent changes of +6.33% and +17.17%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Oracle. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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

In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 14.33. Its industry sports an average Forward P/E of 26.55, so we one might conclude that Oracle is trading at a discount comparatively.

Meanwhile, ORCL's PEG ratio is currently 1.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ORCL's industry had an average PEG ratio of 2.02 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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