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

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Oracle (ORCL - Free Report) closed the most recent trading day at $94.61, moving +0.68% from the previous trading session. This change outpaced the S&P 500's 0.46% loss on the day. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq lost 0.68%.

Coming into today, shares of the software maker had lost 4.36% in the past month. In that same time, the Computer and Technology sector gained 4.67%, while the S&P 500 gained 4.05%.

Oracle will be looking to display strength as it nears its next earnings release. On that day, Oracle is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 4.72%. Our most recent consensus estimate is calling for quarterly revenue of $10.21 billion, up 4.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.65 per share and revenue of $42.23 billion, which would represent changes of -0.43% and +4.31%, respectively, from the prior year.

Any recent changes to analyst estimates for Oracle should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Oracle is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Oracle currently has a Forward P/E ratio of 20.2. For comparison, its industry has an average Forward P/E of 37.47, which means Oracle is trading at a discount to the group.

Investors should also note that ORCL has a PEG ratio of 2.38 right now. 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. The Computer - Software industry currently had an average PEG ratio of 3.04 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 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


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