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Oracle (ORCL) Rises Higher Than Market: Key Facts

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Oracle (ORCL - Free Report) closed at $111.38 in the latest trading session, marking a +0.37% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.17%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.37%.

Prior to today's trading, shares of the software maker had lost 2.44% over the past month. This has lagged the Computer and Technology sector's gain of 2.34% and the S&P 500's gain of 3.8% in that time.

Market participants will be closely following the financial results of Oracle in its upcoming release. The company's earnings per share (EPS) are projected to be $1.37, reflecting a 12.3% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $13.27 billion, up 7.07% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.53 per share and revenue of $53.33 billion. These totals would mark changes of +8.01% and +6.75%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Oracle is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 20.05 right now. This denotes a discount relative to the industry's average Forward P/E of 31.87.

Also, we should mention that ORCL has a PEG ratio of 1.71. 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. The Computer - Software industry currently had an average PEG ratio of 2.41 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 59, putting it in the top 24% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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