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Oracle (ORCL) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Oracle (ORCL - Free Report) closed at $85.94, marking a -0.89% move from the previous day. This change lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.76%, while the tech-heavy Nasdaq lost 10.92%.
Prior to today's trading, shares of the software maker had gained 6.39% over the past month. This has outpaced the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 2.18% in that time.
Oracle will be looking to display strength as it nears its next earnings release. On that day, Oracle is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 5.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.39 billion, up 17.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $49.74 billion. These totals would mark changes of +0.2% and +17.19%, respectively, from last year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Oracle currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Oracle is holding a Forward P/E ratio of 17.65. For comparison, its industry has an average Forward P/E of 26.55, which means Oracle is trading at a discount to the group.
Investors should also note that ORCL has a PEG ratio of 2.21 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Oracle (ORCL) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Oracle (ORCL - Free Report) closed at $85.94, marking a -0.89% move from the previous day. This change lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.76%, while the tech-heavy Nasdaq lost 10.92%.
Prior to today's trading, shares of the software maker had gained 6.39% over the past month. This has outpaced the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 2.18% in that time.
Oracle will be looking to display strength as it nears its next earnings release. On that day, Oracle is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 5.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.39 billion, up 17.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $49.74 billion. These totals would mark changes of +0.2% and +17.19%, respectively, from last year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Oracle currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Oracle is holding a Forward P/E ratio of 17.65. For comparison, its industry has an average Forward P/E of 26.55, which means Oracle is trading at a discount to the group.
Investors should also note that ORCL has a PEG ratio of 2.21 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.