Oracle (ORCL) closed at $79.11 in the latest trading session, marking a -0.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.82%.
Prior to today's trading, shares of the software maker had gained 11.89% over the past month. This has lagged the Computer and Technology sector's gain of 14.05% and the S&P 500's gain of 12.15% 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 $1.07, up 3.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.47 billion, up 17.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $49.73 billion, which would represent changes of +6.33% and +17.17%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Oracle. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Oracle currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 15.19. Its industry sports an average Forward P/E of 28.78, so we one might conclude that Oracle is trading at a discount comparatively.
Meanwhile, ORCL's PEG ratio is currently 1.9. 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. The Computer - Software was holding an average PEG ratio of 2.29 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 149, which puts 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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