Oracle (ORCL) Stock Slides as Market Rises: Facts to Know Before You Trade

Oracle (ORCL) closed the latest trading day at $108.16, indicating a -0.27% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 0.32%.

The software maker's shares have seen a decrease of 3.02% over the last month, not keeping up with the Computer and Technology sector's gain of 2.15% and the S&P 500's gain of 2.99%.

Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.37, reflecting a 12.3% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $13.27 billion, up 7.07% from the prior-year quarter.

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.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oracle. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Oracle presently features a Zacks Rank of #4 (Sell).

Looking at its valuation, Oracle is holding a Forward P/E ratio of 19.6. For comparison, its industry has an average Forward P/E of 30.79, which means Oracle is trading at a discount to the group.

We can additionally observe that ORCL currently boasts a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software was holding an average PEG ratio of 2.31 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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