Oracle (ORCL) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Oracle (ORCL) closed at $90.69, marking a +1.11% move from the previous day. This move outpaced the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the software maker had gained 14.84% over the past month. This has outpaced the Computer and Technology sector's gain of 1.57% and the S&P 500's gain of 3.28% in that time.

ORCL will be looking to display strength as it nears its next earnings release. In that report, analysts expect ORCL to post earnings of $0.97 per share. This would mark year-over-year growth of 4.3%. Our most recent consensus estimate is calling for quarterly revenue 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 typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.39% lower within the past month. ORCL currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ORCL is currently trading at a Forward P/E ratio of 19.32. Its industry sports an average Forward P/E of 43.11, so we one might conclude that ORCL is trading at a discount comparatively.

Investors should also note that ORCL has a PEG ratio of 2.27 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. The Computer - Software was holding an average PEG ratio of 2.61 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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