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Here's Why Oracle (ORCL) Fell More Than Broader Market
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Oracle (ORCL - Free Report) closed at $117.98 in the latest trading session, marking a -1.51% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.74%.
The stock of software maker has fallen by 12.81% in the past month, leading the Computer and Technology sector's loss of 13.13% and undershooting the S&P 500's loss of 3.31%.
Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.88, reflecting a 16.81% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $21.31 billion, showing a 32.68% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.12 per share and a revenue of $90.5 billion, indicating changes of +6.42% and +34.36%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Oracle currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 14.75. This signifies a discount in comparison to the average Forward P/E of 17.56 for its industry.
Also, we should mention that ORCL has a PEG ratio of 0.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.44.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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) closed at $117.98 in the latest trading session, marking a -1.51% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.74%.
The stock of software maker has fallen by 12.81% in the past month, leading the Computer and Technology sector's loss of 13.13% and undershooting the S&P 500's loss of 3.31%.
Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.88, reflecting a 16.81% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $21.31 billion, showing a 32.68% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.12 per share and a revenue of $90.5 billion, indicating changes of +6.42% and +34.36%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Oracle currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 14.75. This signifies a discount in comparison to the average Forward P/E of 17.56 for its industry.
Also, we should mention that ORCL has a PEG ratio of 0.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.44.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.