Oracle (ORCL) Stock Sinks As Market Gains: What You Should Know
Oracle (ORCL) closed the most recent trading day at $56.19, moving -0.41% from the previous trading session. This move lagged the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the software maker had gained 2.47% over the past month. This has lagged the Computer and Technology sector's gain of 4.89% and the S&P 500's gain of 4.32% in that time.
ORCL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.88, up 10% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.63 billion, up 0.65% from the year-ago period.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $3.88 per share and revenue of $40.07 billion. These results would represent year-over-year changes of +10.23% and +1.38%, respectively.
It is also important to note the recent changes to analyst estimates for ORCL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. ORCL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ORCL has a Forward P/E ratio of 14.56 right now. For comparison, its industry has an average Forward P/E of 30.81, which means ORCL is trading at a discount to the group.
We can also see that ORCL currently has a PEG ratio of 1.49. 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 was holding an average PEG ratio of 2.29 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming 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.