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

Oracle (ORCL) closed the most recent trading day at $101.77, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.02% gain on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 2.7%.

Coming into today, shares of the software maker had gained 8.08% in the past month. In that same time, the Computer and Technology sector gained 6.8%, while the S&P 500 gained 1.07%.

Oracle will be looking to display strength as it nears its next earnings release. In that report, analysts expect Oracle to post earnings of $1.58 per share. This would mark year-over-year growth of 2.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.74 billion, up 16.04% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.04 per share and revenue of $49.86 billion, which would represent changes of +2.86% and +17.47%, respectively, from the prior year.


Any recent changes to analyst estimates for Oracle should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Oracle is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Oracle currently has a Forward P/E ratio of 20.41. This valuation marks a discount compared to its industry's average Forward P/E of 25.98.

Meanwhile, ORCL's PEG ratio is currently 2.55. 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 2.19 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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