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Why Oracle (ORCL) Dipped More Than Broader Market Today
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In the latest market close, Oracle (ORCL - Free Report) reached $137.82, with a -0.68% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.93%.
The software maker's stock has climbed by 0.39% in the past month, exceeding the Computer and Technology sector's loss of 2.41% and the S&P 500's loss of 0.26%.
Market participants will be closely following the financial results of Oracle in its upcoming release. The company is expected to report EPS of $1.32, up 10.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.22 billion, up 6.17% from the prior-year quarter.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $6.18 per share and revenue of $57.75 billion. These results would represent year-over-year changes of +11.15% and +9.04%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Oracle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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 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 0.25% higher. Oracle is currently a Zacks Rank #3 (Hold).
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 22.44. This signifies a discount in comparison to the average Forward P/E of 29.24 for its industry.
It's also important to note that ORCL currently trades at a PEG ratio of 2.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.38.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Oracle (ORCL) Dipped More Than Broader Market Today
In the latest market close, Oracle (ORCL - Free Report) reached $137.82, with a -0.68% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.93%.
The software maker's stock has climbed by 0.39% in the past month, exceeding the Computer and Technology sector's loss of 2.41% and the S&P 500's loss of 0.26%.
Market participants will be closely following the financial results of Oracle in its upcoming release. The company is expected to report EPS of $1.32, up 10.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.22 billion, up 6.17% from the prior-year quarter.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $6.18 per share and revenue of $57.75 billion. These results would represent year-over-year changes of +11.15% and +9.04%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Oracle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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 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 0.25% higher. Oracle is currently a Zacks Rank #3 (Hold).
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 22.44. This signifies a discount in comparison to the average Forward P/E of 29.24 for its industry.
It's also important to note that ORCL currently trades at a PEG ratio of 2.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.38.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.