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Why Oracle (ORCL) Dipped More Than Broader Market Today
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Oracle (ORCL - Free Report) closed at $117.77 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's daily loss of 1.52%. At the same time, the Dow lost 2.19%, and the tech-heavy Nasdaq lost 1.74%.
Prior to today's trading, shares of the software maker had lost 18.14% lagged the Computer and Technology sector's loss of 3.5% and the S&P 500's gain of 1.92%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. The company is predicted to post an EPS of $1.72, indicating a 17.01% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $19.13 billion, indicating a 28.14% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.03 per share and a revenue of $89.73 billion, representing changes of +5.24% and +33.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Currently, Oracle is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 14.93. This denotes a discount relative to the industry average Forward P/E of 15.92.
One should further note that ORCL currently holds a PEG ratio of 0.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.31.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Oracle (ORCL) Dipped More Than Broader Market Today
Oracle (ORCL - Free Report) closed at $117.77 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's daily loss of 1.52%. At the same time, the Dow lost 2.19%, and the tech-heavy Nasdaq lost 1.74%.
Prior to today's trading, shares of the software maker had lost 18.14% lagged the Computer and Technology sector's loss of 3.5% and the S&P 500's gain of 1.92%.
The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. The company is predicted to post an EPS of $1.72, indicating a 17.01% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $19.13 billion, indicating a 28.14% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.03 per share and a revenue of $89.73 billion, representing changes of +5.24% and +33.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Currently, Oracle is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Oracle is currently trading at a Forward P/E ratio of 14.93. This denotes a discount relative to the industry average Forward P/E of 15.92.
One should further note that ORCL currently holds a PEG ratio of 0.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.31.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.