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In the latest trading session, Oracle (ORCL) closed at $87.18, marking a -0.71% move from the previous day. This change lagged the S&P 500's daily loss of 0.02%.
Heading into today, shares of the software maker had gained 12.42% over the past month, outpacing the Computer and Technology sector's gain of 2.65% and the S&P 500's gain of 2.91% in that time.
ORCL will be looking to display strength as it nears its next earnings release. On that day, ORCL is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 4.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.77 billion, up 4.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.64 per share and revenue of $42.28 billion, which would represent changes of -0.64% and +4.45%, respectively, from the prior year.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. ORCL is currently a Zacks Rank #3 (Hold).
Digging into valuation, ORCL currently has a Forward P/E ratio of 18.91. Its industry sports an average Forward P/E of 43.12, so we one might conclude that ORCL is trading at a discount comparatively.
We can also see that ORCL currently has a PEG ratio of 2.22. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.66 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
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.
To follow ORCL in the coming trading sessions, be sure to utilize Zacks.com.
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