Oracle (ORCL) Gains As Market Dips: What You Should Know

Oracle (ORCL) closed the most recent trading day at $79.78, moving +0.24% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the software maker had lost 9.77% over the past month. This has was narrower than the Computer and Technology sector's loss of 13.86% and lagged the S&P 500's loss of 7.87% in that time.

Investors will be hoping for strength from Oracle as it approaches its next earnings release. In that report, analysts expect Oracle to post earnings of $1.17 per share. This would mark year-over-year growth of 0.86%. Meanwhile, our latest consensus estimate is calling for revenue of $10.51 billion, up 4.21% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.80 per share and revenue of $42.3 billion, which would represent changes of +2.78% and +4.49%, respectively, from the prior year.

Investors should also note any 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.

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.

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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Oracle is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 16.6 right now. This represents a discount compared to its industry's average Forward P/E of 31.97.

Also, we should mention that ORCL has a PEG ratio of 2.07. 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. ORCL's industry had an average PEG ratio of 2.56 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 97, putting it in the top 39% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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