In the latest trading session, Oracle (ORCL) closed at $128.51, marking a -4.43% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.09%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 2.15%.
Coming into today, shares of the software maker had lost 10.71% in the past month. In that same time, the Computer and Technology sector gained 1.99%, while the S&P 500 gained 2.44%.
Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.88, marking a 16.81% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $21.31 billion, indicating a 32.68% increase compared to the same quarter of the previous year.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $8.13 per share and revenue of $90.5 billion. These results would represent year-over-year changes of +6.55% and +34.36%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.14% higher. Oracle is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 16.55 right now. For comparison, its industry has an average Forward P/E of 16.78, which means Oracle is trading at a discount to the group.
Meanwhile, ORCL's PEG ratio is currently 0.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.38.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 25% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).