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Oracle (ORCL) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Oracle (ORCL - Free Report) closed at $89.64, marking a -0.07% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.44%.

Prior to today's trading, shares of the software maker had gained 10.77% over the past month. This has lagged the Computer and Technology sector's gain of 11.1% and outpaced the S&P 500's gain of 4.57% 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 $1.19 per share, which would represent year-over-year growth of 5.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.39 billion, up 17.9% from the year-ago period.

ORCL's full-year Zacks Consensus Estimates are calling for earnings of $4.91 per share and revenue of $49.74 billion. These results would represent year-over-year changes of +0.2% and +17.19%, respectively.

It is also important to note the recent changes to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.18% lower. Oracle is currently a Zacks Rank #3 (Hold).

In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 18.28. This valuation marks a discount compared to its industry's average Forward P/E of 27.47.

It is also worth noting that ORCL currently has a PEG ratio of 2.29. 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 2.07 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 108, putting it in the top 43% 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.

To follow ORCL in the coming trading sessions, be sure to utilize Zacks.com.


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