In the latest trading session, Oracle (ORCL) closed at $128.51, marking a -4.43% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.09%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 2.15%.
Coming into today, shares of the software maker had lost 10.71% in the past month. In that same time, the Computer and Technology sector gained 1.99%, while the S&P 500 gained 2.44%.
Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.88, marking a 16.81% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $21.31 billion, indicating a 32.68% increase compared to the same quarter of the previous year.
ORCL’s full-year Zacks Consensus Estimates are calling for earnings of $8.13 per share and revenue of $90.5 billion. These results would represent year-over-year changes of +6.55% and +34.36%, respectively.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term 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, 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 moved 1.14% higher. Oracle is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 16.55 right now. For comparison, its industry has an average Forward P/E of 16.78, which means Oracle is trading at a discount to the group.
Meanwhile, ORCL’s PEG ratio is currently 0.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Computer – Software industry held an average PEG ratio of 1.38.
The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 25% of all 250+ industries.
