Back to top

Image: Bigstock

Oracle (ORCL) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

In the latest market close, Oracle (ORCL - Free Report) reached $115.78, with a -1.18% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.54%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.84%.

Heading into today, shares of the software maker had gained 8.43% over the past month, lagging the Computer and Technology sector's gain of 10.06% and the S&P 500's gain of 8.62% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.32, showcasing a 9.09% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $13.05 billion, indicating a 6.32% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $5.52 per share and a revenue of $53.58 billion, demonstrating changes of +7.81% and +7.26%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. Currently, Oracle is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Oracle is currently being traded at a Forward P/E ratio of 21.23. This denotes a discount relative to the industry's average Forward P/E of 32.21.

It's also important to note that ORCL currently trades at a PEG ratio of 2.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ORCL's industry had an average PEG ratio of 2.46 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize 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:

Oracle Corporation (ORCL) - free report >>

Published in