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Oracle (ORCL) Outpaces Stock Market Gains: What You Should Know

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Oracle (ORCL - Free Report) closed the most recent trading day at $89.20, moving +0.47% from the previous trading session. This change outpaced the S&P 500's 0.4% gain on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 1.1%.

Heading into today, shares of the software maker had gained 10.88% over the past month, outpacing the Computer and Technology sector's loss of 0.9% and the S&P 500's loss of 0.01% in that time.

Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. On that day, Oracle is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 5.31%. Our most recent consensus estimate is calling for quarterly revenue of $12.39 billion, up 17.9% from the year-ago period.

ORCL's full-year Zacks Consensus Estimates are calling for earnings of $4.88 per share and revenue of $49.74 billion. These results would represent year-over-year changes of -0.41% and +17.19%, respectively.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.36% lower. Oracle is currently a Zacks Rank #3 (Hold).

Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 18.18. For comparison, its industry has an average Forward P/E of 27.01, which means Oracle is trading at a discount to the group.

Investors should also note that ORCL has a PEG ratio of 2.27 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. The Computer - Software industry currently had an average PEG ratio of 2.08 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 66, which puts it in the top 27% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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