We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Oracle (ORCL) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Oracle (ORCL - Free Report) closed at $80.79 in the latest trading session, marking a +0.06% move from the prior day. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 0.1%.
Coming into today, shares of the software maker had lost 9.57% in the past month. In that same time, the Computer and Technology sector lost 5.35%, while the S&P 500 lost 4.03%.
Oracle will be looking to display strength as it nears its next earnings release. On that day, Oracle is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 0.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.51 billion, up 4.21% from the year-ago period.
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.
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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 16.84 right now. For comparison, its industry has an average Forward P/E of 32.66, which means Oracle is trading at a discount to the group.
We can also see that ORCL currently has a PEG ratio of 2.1. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.67 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 186, which puts it in the bottom 28% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Oracle (ORCL) Gains But Lags Market: What You Should Know
Oracle (ORCL - Free Report) closed at $80.79 in the latest trading session, marking a +0.06% move from the prior day. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 0.1%.
Coming into today, shares of the software maker had lost 9.57% in the past month. In that same time, the Computer and Technology sector lost 5.35%, while the S&P 500 lost 4.03%.
Oracle will be looking to display strength as it nears its next earnings release. On that day, Oracle is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 0.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.51 billion, up 4.21% from the year-ago period.
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.
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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 16.84 right now. For comparison, its industry has an average Forward P/E of 32.66, which means Oracle is trading at a discount to the group.
We can also see that ORCL currently has a PEG ratio of 2.1. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.67 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 186, which puts it in the bottom 28% 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.