Oracle (ORCL) Gains As Market Dips: What You Should Know

Oracle (ORCL) closed at $114.06 in the latest trading session, marking a +0.25% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.12%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.41%.

The software maker's stock has dropped by 1.74% in the past month, falling short of the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.

Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. In that report, analysts expect Oracle to post earnings of $1.37 per share. This would mark year-over-year growth of 12.3%. Meanwhile, the latest consensus estimate predicts the revenue to be $13.27 billion, indicating a 7.07% increase compared to the same quarter of the previous year.

ORCL's full-year Zacks Consensus Estimates are calling for earnings of $5.53 per share and revenue of $53.33 billion. These results would represent year-over-year changes of +8.01% and +6.75%, respectively.

Investors might also notice recent changes to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 has remained steady. At present, Oracle boasts a Zacks Rank of #4 (Sell).

Digging into valuation, Oracle currently has a Forward P/E ratio of 20.58. This expresses a discount compared to the average Forward P/E of 32.5 of its industry.

It is also worth noting that ORCL currently has a PEG ratio of 1.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ORCL's industry had an average PEG ratio of 2.45 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 20% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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