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

Oracle (ORCL) closed the most recent trading day at $88.46, moving +1.27% from the previous trading session. This change lagged the S&P 500's 1.46% gain on the day. Elsewhere, the Dow gained 1.09%, while the tech-heavy Nasdaq added 6.63%.

Heading into today, shares of the software maker had gained 6.86% over the past month, lagging the Computer and Technology sector's gain of 9.6% and outpacing the S&P 500's gain of 4.75% in that time.

Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. The company is expected to report EPS of $1.19, up 5.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.39 billion, up 17.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $49.74 billion, which would represent changes of +0.2% and +17.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Oracle. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Oracle currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Oracle is holding a Forward P/E ratio of 17.8. This valuation marks a discount compared to its industry's average Forward P/E of 27.75.

We can also see that ORCL currently has a PEG ratio of 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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