Oracle (ORCL) closed the most recent trading day at $142.45, moving -2.74% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.28%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.77%.
Shares of the software maker have appreciated by 27.38% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.04%, and the S&P 500's gain of 2.31%.
The upcoming earnings release of Oracle will be of great interest to investors. The company is predicted to post an EPS of $1.72, indicating a 17.01% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.14 billion, up 28.24% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.03 per share and a revenue of $89.8 billion, indicating changes of +5.24% and +33.32%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Oracle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.27% upward. Oracle currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 18.23. This valuation marks a premium compared to its industry average Forward P/E of 17.72.
We can also see that ORCL currently has a PEG ratio of 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 1.56 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Oracle Corporation (ORCL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).