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In the latest trading session, Oracle (ORCL) closed at $67.04, marking a -1.84% move from the previous day. This change lagged the S&P 500's 0.58% loss on the day. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq gained 0.56%.
Heading into today, shares of the software maker had lost 14.93% over the past month, lagging the Computer and Technology sector's loss of 12.19% and the S&P 500's loss of 10.53% in that time.
Investors will be hoping for strength from Oracle as it approaches its next earnings release. The company is expected to report EPS of $1.36, down 11.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.65 billion, up 3.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.76 per share and revenue of $42.24 billion, which would represent changes of +1.93% and +4.36%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Oracle. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Oracle is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 14.34. This represents a discount compared to its industry's average Forward P/E of 27.95.
Also, we should mention that ORCL has a PEG ratio of 1.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ORCL's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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