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Oracle (ORCL) Gains But Lags Market: What You Should Know

Oracle (ORCL) closed at $115.09 in the latest trading session, marking a +0.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.2%. Elsewhere, the Dow saw an upswing of 0.69%, while the tech-heavy Nasdaq appreciated by 1.59%.

The software maker's shares have seen a decrease of 9.16% over the last month, not keeping up with the Computer and Technology sector's loss of 6.83% and the S&P 500's loss of 4.16%.

Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. The company is expected to report EPS of $1.64, down 1.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.56 billion, up 5.21% from the year-ago period.

ORCL's full-year Zacks Consensus Estimates are calling for earnings of $5.58 per share and revenue of $53.22 billion. These results would represent year-over-year changes of +8.98% and +6.54%, respectively.

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Investors should also take note of any recent adjustments to analyst estimates for Oracle. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Oracle presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Oracle is holding a Forward P/E ratio of 20.52. This signifies a discount in comparison to the average Forward P/E of 28.46 for its industry.

Also, we should mention that ORCL has a PEG ratio of 1.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.24 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 39% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Oracle Corporation (ORCL) : Free Stock Analysis Report

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