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Oracle (ORCL) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest close session, Oracle (ORCL - Free Report) was down 1.08% at $193.84. The stock fell short of the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.1%.
The software maker's stock has climbed by 41.9% in the past month, exceeding the Computer and Technology sector's gain of 19.09% and the S&P 500's gain of 9.13%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. On that day, Oracle is projected to report earnings of $1.96 per share, which would represent year-over-year growth of 15.29%. Simultaneously, our latest consensus estimate expects the revenue to be $19.08 billion, showing a 19.98% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.46 per share and revenue of $67.22 billion, indicating changes of +23.71% and +17.1%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. Oracle is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 26.28. For comparison, its industry has an average Forward P/E of 17.99, which means Oracle is trading at a premium to the group.
Investors should also note that ORCL has a PEG ratio of 1.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 1.52 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 155, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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Oracle (ORCL) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest close session, Oracle (ORCL - Free Report) was down 1.08% at $193.84. The stock fell short of the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.1%.
The software maker's stock has climbed by 41.9% in the past month, exceeding the Computer and Technology sector's gain of 19.09% and the S&P 500's gain of 9.13%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. On that day, Oracle is projected to report earnings of $1.96 per share, which would represent year-over-year growth of 15.29%. Simultaneously, our latest consensus estimate expects the revenue to be $19.08 billion, showing a 19.98% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.46 per share and revenue of $67.22 billion, indicating changes of +23.71% and +17.1%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. Oracle is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 26.28. For comparison, its industry has an average Forward P/E of 17.99, which means Oracle is trading at a premium to the group.
Investors should also note that ORCL has a PEG ratio of 1.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 1.52 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 155, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.