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Here's Why Oracle (ORCL) Fell More Than Broader Market
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Oracle (ORCL - Free Report) ended the recent trading session at $149.12, demonstrating a -1.15% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.12%.
Shares of the software maker witnessed a gain of 16.16% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.52%, and the S&P 500's gain of 3.87%.
Market participants will be closely following the financial results of Oracle in its upcoming release. The company is forecasted to report an EPS of $1.72, showcasing a 17.01% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $19.14 billion, indicating a 28.24% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.03 per share and a revenue of $89.8 billion, signifying shifts of +5.24% and +33.32%, respectively, from the last year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.27% higher. Oracle is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Oracle currently has a Forward P/E ratio of 18.78. This indicates a premium in contrast to its industry's Forward P/E of 18.1.
We can additionally observe that ORCL currently boasts a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.65.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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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Here's Why Oracle (ORCL) Fell More Than Broader Market
Oracle (ORCL - Free Report) ended the recent trading session at $149.12, demonstrating a -1.15% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.12%.
Shares of the software maker witnessed a gain of 16.16% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.52%, and the S&P 500's gain of 3.87%.
Market participants will be closely following the financial results of Oracle in its upcoming release. The company is forecasted to report an EPS of $1.72, showcasing a 17.01% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $19.14 billion, indicating a 28.24% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.03 per share and a revenue of $89.8 billion, signifying shifts of +5.24% and +33.32%, respectively, from the last year.
Any recent changes to analyst estimates for Oracle should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.27% higher. Oracle is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Oracle currently has a Forward P/E ratio of 18.78. This indicates a premium in contrast to its industry's Forward P/E of 18.1.
We can additionally observe that ORCL currently boasts a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.65.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.