At last close, Oracle (ORCL) hit $138.90, moving -0.21% from the previous day. This move was less than the S&P 500’s daily loss of 0.32%. Elsewhere, the Dow posted a 0.16% gain, while the tech-heavy Nasdaq declined 0.85%.
Shares of the software maker rose 0.13 percent last month, outpacing the Computer and Technology sector’s loss of 1 percent and lagging the S&P 500’s gain of 1.52 percent.
The investment community will be closely following Oracle’s earnings performance in the upcoming release. In that report, analysts expect Oracle to report earnings of $1.32 per share, which would represent year-over-year growth of 10.92%. Meanwhile, our latest consensus estimate is for revenue of $13.22 billion, up 6.14% from the year-ago quarter.
The Zacks Consensus Estimates for ORCL are calling for full-year earnings of $6.19 per share and revenue of $57.75 billion. These results would represent year-over-year changes of +11.33% and +9.04%, respectively.
Investors should also pay attention to any recent changes in analyst estimates for Oracle. These recent changes typically reflect the evolving nature of near-term business trends. As a result, optimistic changes in estimates suggest that analysts are becoming positive about the company’s business health and profitability.
Empirical research shows that these estimate changes are directly related to upcoming stock price movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of success. #1-ranked stocks have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Oracle currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Oracle is currently trading at a P/E ratio of 22.5, which represents a discount to the industry average P/E ratio of 31.48.
It is also important to note that ORCL currently has a PEG ratio of 2.04. The PEG ratio is similar to the commonly used P/E ratio, but this value also takes into account the company’s expected earnings growth rate. The Computer and Software industry had an average PEG ratio of 2.36 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 72, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank evaluates the vitality of our specific industry groups by calculating the average Zacks Rank of the individual stocks included in the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Use Zacks.com to stay on top of all these and other stock-changing metrics in upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days today. Click here to get this free report
Oracle Corporation (ORCL): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
