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Oracle (ORCL) Rises But Trails Market: What Investors Should Know

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Oracle (ORCL - Free Report) closed the latest trading day at $114.26, indicating a +0.51% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 1.3%.

Heading into today, shares of the software maker had gained 6.67% over the past month, lagging the Computer and Technology sector's gain of 6.92% and outpacing the S&P 500's gain of 3.69% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. In that report, analysts expect Oracle to post earnings of $1.37 per share. This would mark year-over-year growth of 12.3%. Meanwhile, the latest consensus estimate predicts the revenue to be $13.27 billion, indicating a 7.07% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.53 per share and revenue of $53.33 billion, which would represent changes of +8.01% and +6.75%, respectively, from the prior year.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Oracle holds a Zacks Rank of #4 (Sell).

Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 20.55. This represents a discount compared to its industry's average Forward P/E of 31.83.

We can also see that ORCL currently has a PEG ratio of 1.75. 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 2.39 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 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.

You can find more information on all of these metrics, and much more, on

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