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Oracle (ORCL) Increases Yet Falls Behind Market: What Investors Need to Know
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Oracle (ORCL - Free Report) closed the most recent trading day at $134.26, moving +1.27% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.69% for the day. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.
Shares of the software maker have depreciated by 7.33% over the course of the past month, outperforming the Computer and Technology sector's loss of 9.75% and lagging the S&P 500's loss of 4.78%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. On that day, Oracle is projected to report earnings of $1.32 per share, which would represent year-over-year growth of 10.92%. In the meantime, our current consensus estimate forecasts the revenue to be $13.22 billion, indicating a 6.17% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.18 per share and a revenue of $57.75 billion, indicating changes of +11.15% and +9.04%, respectively, from the former 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. 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.
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. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. Oracle is currently a Zacks Rank #3 (Hold).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 21.44. This expresses a discount compared to the average Forward P/E of 29.54 of its industry.
Meanwhile, ORCL's PEG ratio is currently 1.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.25.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 45% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Oracle (ORCL) Increases Yet Falls Behind Market: What Investors Need to Know
Oracle (ORCL - Free Report) closed the most recent trading day at $134.26, moving +1.27% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.69% for the day. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.
Shares of the software maker have depreciated by 7.33% over the course of the past month, outperforming the Computer and Technology sector's loss of 9.75% and lagging the S&P 500's loss of 4.78%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. On that day, Oracle is projected to report earnings of $1.32 per share, which would represent year-over-year growth of 10.92%. In the meantime, our current consensus estimate forecasts the revenue to be $13.22 billion, indicating a 6.17% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.18 per share and a revenue of $57.75 billion, indicating changes of +11.15% and +9.04%, respectively, from the former 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. 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.
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. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. Oracle is currently a Zacks Rank #3 (Hold).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 21.44. This expresses a discount compared to the average Forward P/E of 29.54 of its industry.
Meanwhile, ORCL's PEG ratio is currently 1.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.25.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 45% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.