Oracle (ORCL) closed the most recent trading day at $134.26, up 1.27% from the previous trading session. The stock lagged the S&P 500, which was up 1.69% for the day. At the same time, the Dow gained 1.04% and the tech-heavy Nasdaq gained 2.43%.
The software maker’s shares lost 7.33 percent of their value over the past month, outperforming the computer and technology sector’s loss of 9.75 percent and lagging behind the S&P 500’s loss of 4.78 percent.
The investment community will be closely watching Oracle’s performance in its upcoming earnings report. On that day, Oracle is expected to report earnings of $1.32 per share, representing year-over-year growth of 10.92%. Meanwhile, our current consensus estimate is calling for revenue of $13.22 billion, representing growth of 6.17% from the corresponding quarter last year.
For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.18 per share and revenue of $57.75 billion, representing year-over-year changes of +11.15% and +9.04%, respectively.
It is also important to note recent changes in analyst estimates for Oracle. Recent revisions typically 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 prospects.
Based on our research, we believe these estimate changes are directly related to stock moves within the team. To capitalize on 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 ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven, outside-audited track record of success, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there has been a 0.25% increase in the Zacks Consensus EPS estimate. Oracle currently has a Zacks Rank #3 (Hold).
In terms of valuation, Oracle is currently trading at a P/E ratio of 21.44, which represents a discount to the industry average P/E ratio of 29.54.
Meanwhile, ORCL’s PEG ratio currently stands at 1.95. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth curve. At the end of yesterday’s trading session, the average PEG ratio of the Computer and Software industry was 2.25.
The Computer Software industry is part of the Computer and Technology sector. Currently, this industry has a Zacks Industry Rank of 141, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Remember to use Zacks.com to track these and other metrics on stock movement during the coming trading sessions.
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