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Oracle (ORCL) Dips More Than Broader Markets: What You Should Know

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Oracle (ORCL - Free Report) closed at $50.24 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 1.61%.

Coming into today, shares of the software maker had lost 5.27% in the past month. In that same time, the Computer and Technology sector lost 8.75%, while the S&P 500 lost 6.3%.

ORCL will be looking to display strength as it nears its next earnings release. In that report, analysts expect ORCL to post earnings of $1.07 per share. This would mark year-over-year growth of 8.08%. Our most recent consensus estimate is calling for quarterly revenue of $10.96 billion, down 2.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.44 per share and revenue of $39.34 billion, which would represent changes of +10.26% and -1.36%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ORCL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ORCL currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ORCL is holding a Forward P/E ratio of 14.72. Its industry sports an average Forward P/E of 29.53, so we one might conclude that ORCL is trading at a discount comparatively.

Meanwhile, ORCL's PEG ratio is currently 1.5. 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. The Computer - Software industry currently had an average PEG ratio of 2.11 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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