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Oracle (ORCL) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Oracle (ORCL - Free Report) ended the recent trading session at $137.92, demonstrating a +0.33% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.97% for the day. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1.39%.

Prior to today's trading, shares of the software maker had lost 0.79% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.36% and the S&P 500's loss of 1.85% in that time.

The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. It is anticipated that the company will report an EPS of $1.32, marking a 10.92% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.22 billion, indicating a 6.14% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.19 per share and revenue of $57.75 billion, which would represent changes of +11.33% and +9.04%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Oracle presently features a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 22.23 right now. This valuation marks a discount compared to its industry's average Forward P/E of 30.61.

It is also worth noting that ORCL currently has a PEG ratio of 2.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 2.32 at the close of the market yesterday.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 39% of all industries, numbering over 250.

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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