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Oracle (ORCL) Stock Moves -1.24%: What You Should Know

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Oracle (ORCL - Free Report) closed the most recent trading day at $86.20, moving -1.24% from the previous trading session. This change was narrower than the S&P 500's 2% loss on the day. Meanwhile, the Dow lost 2.06%, and the Nasdaq, a tech-heavy index, lost 2.32%.

Prior to today's trading, shares of the software maker had lost 1.9% over the past month. This has lagged the Computer and Technology sector's gain of 3.51% and the S&P 500's gain of 2.88% in that time.

Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. In that report, analysts expect Oracle to post earnings of $1.19 per share. This would mark 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.90 per share and revenue of $49.74 billion, which would represent changes of 0% and +17.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Oracle. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 has moved 0.03% lower. Oracle is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 17.8 right now. For comparison, its industry has an average Forward P/E of 27.9, which means Oracle is trading at a discount to the group.

Also, we should mention that ORCL has a PEG ratio of 2.23. 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 2.08 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 106, which puts it in the top 43% 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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