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Oracle (ORCL) Stock Sinks As Market Gains: Here's Why

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In the latest market close, Oracle (ORCL - Free Report) reached $116.68, with a -0.5% movement compared to the previous day. This change lagged the S&P 500's 0.06% gain on the day. On the other hand, the Dow registered a gain of 0.13%, and the technology-centric Nasdaq increased by 0.24%.

Heading into today, shares of the software maker had gained 12.85% over the past month, outpacing the Computer and Technology sector's gain of 12.39% and the S&P 500's gain of 6.45% in that time.

Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.37, marking a 12.3% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.27 billion, up 7.07% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $5.53 per share and a revenue of $53.33 billion, demonstrating changes of +8.01% and +6.75%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Oracle holds a Zacks Rank of #3 (Hold).

In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 21.19. This expresses a discount compared to the average Forward P/E of 32 of its industry.

Investors should also note that ORCL has a PEG ratio of 1.8 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ORCL's industry had an average PEG ratio of 2.45 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 23% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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