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Why the Market Dipped But Oracle (ORCL) Gained Today
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In the latest trading session, Oracle (ORCL - Free Report) closed at $151.05, marking a +2.74% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.06%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.32%.
The software maker's stock has climbed by 4.54% in the past month, exceeding the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 3.42%.
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, our latest consensus estimate is calling for revenue of $19.13 billion, up 28.14% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.03 per share and revenue of $89.73 billion. These totals would mark changes of +5.24% and +33.21%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oracle. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Oracle is currently a Zacks Rank #3 (Hold).
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 18.3. This signifies a premium in comparison to the average Forward P/E of 18.13 for its industry.
Investors should also note that ORCL has a PEG ratio of 0.74 right now. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.61.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Why the Market Dipped But Oracle (ORCL) Gained Today
In the latest trading session, Oracle (ORCL - Free Report) closed at $151.05, marking a +2.74% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.06%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.32%.
The software maker's stock has climbed by 4.54% in the past month, exceeding the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 3.42%.
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, our latest consensus estimate is calling for revenue of $19.13 billion, up 28.14% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.03 per share and revenue of $89.73 billion. These totals would mark changes of +5.24% and +33.21%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oracle. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Oracle is currently a Zacks Rank #3 (Hold).
In the context of valuation, Oracle is at present trading with a Forward P/E ratio of 18.3. This signifies a premium in comparison to the average Forward P/E of 18.13 for its industry.
Investors should also note that ORCL has a PEG ratio of 0.74 right now. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.61.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.