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

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Oracle (ORCL - Free Report) closed the most recent trading day at $69.83, moving +1.16% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.04%.

Prior to today's trading, shares of the software maker had lost 7.35% over the past month. This has was narrower than the Computer and Technology sector's loss of 9.71% and the S&P 500's loss of 7.49% in that time.

Oracle will be looking to display strength as it nears its next earnings release. On that day, Oracle is projected to report earnings of $1.36 per share, which would represent a year-over-year decline of 11.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.65 billion, up 3.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $42.24 billion. These totals would mark changes of +1.93% and +4.36%, respectively, from last year.

Any recent changes to analyst estimates for Oracle should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Oracle currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Oracle currently has a Forward P/E ratio of 14.49. This valuation marks a discount compared to its industry's average Forward P/E of 27.85.

Meanwhile, ORCL's PEG ratio is currently 1.81. 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 industry currently had an average PEG ratio of 2.13 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 150, putting it in the bottom 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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