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Oracle (ORCL) Gains But Lags Market: What You Should Know
In the latest trading session, Oracle (ORCL - Free Report) closed at $72.59, marking a +0.48% move from the previous day. The stock lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.07%.
Heading into today, shares of the software maker had gained 6.74% over the past month, outpacing the Computer and Technology sector's loss of 12.83% and lagging the S&P 500's gain of 7.25% in that time.
Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. 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 $11.46 billion, up 17.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.20 per share and revenue of $49.12 billion. These totals would mark changes of +6.12% and +15.74%, respectively, from last year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #3 (Hold).
Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 13.89. Its industry sports an average Forward P/E of 24.69, so we one might conclude that Oracle is trading at a discount comparatively.
Also, we should mention that ORCL has a PEG ratio of 1.74. 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. ORCL's industry had an average PEG ratio of 2.21 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 152, putting it in the bottom 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.