Oracle (ORCL) ended the recent trading session at $190.96, demonstrating a -1.09% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.07%.
Heading into today, shares of the software maker had gained 16.33% over the past month, outpacing the Computer and Technology sector's gain of 9.97% and the S&P 500's gain of 5.12%.
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 $1.96 per share. This would mark year-over-year growth of 15.29%. Alongside, our most recent consensus estimate is anticipating revenue of $19.08 billion, indicating a 19.98% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $67.22 billion, which would represent changes of +23.71% and +17.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Oracle holds a Zacks Rank of #2 (Buy).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 25.9. Its industry sports an average Forward P/E of 16.55, so one might conclude that Oracle is trading at a premium comparatively.
Investors should also note that ORCL has a PEG ratio of 1.5 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ORCL's industry had an average PEG ratio of 1.5 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 165, putting it in the bottom 33% 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.
To follow ORCL in the coming trading sessions, be sure to utilize Zacks.com.
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Oracle Corporation (ORCL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).