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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 $113.10, marking a -1.85% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.

Heading into today, shares of the software maker had gained 0.3% over the past month, lagging the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% in that time.

Oracle will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.14, up 10.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.45 billion, up 8.82% from the year-ago period.

ORCL's full-year Zacks Consensus Estimates are calling for earnings of $5.51 per share and revenue of $53.85 billion. These results would represent year-over-year changes of +7.62% and +7.8%, respectively.

It is also important to note the recent changes to analyst estimates for Oracle. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Oracle is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 20.9. This valuation marks a discount compared to its industry's average Forward P/E of 28.48.

Also, we should mention that ORCL has a PEG ratio of 2.61. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.4 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 80, which puts it in the top 32% 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.

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


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