Oracle (ORCL) closed the most recent trading day at $105.15, moving +1.03% from the previous trading session. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq lost 2.33%.
Heading into today, shares of the software maker had gained 9.71% over the past month, lagging the Computer and Technology sector's gain of 9.73% and outpacing the S&P 500's gain of 1.03% in that time.
Wall Street will be looking for positivity from Oracle as it approaches its next earnings report date. On that day, Oracle is projected to report earnings of $1.58 per share, which would represent year-over-year growth of 2.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.74 billion, up 16.04% from the year-ago period.
ORCL's full-year Zacks Consensus Estimates are calling for earnings of $5.04 per share and revenue of $49.86 billion. These results would represent year-over-year changes of +2.86% and +17.47%, respectively.
Any recent changes to analyst estimates for Oracle should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Oracle is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 20.66 right now. This valuation marks a discount compared to its industry's average Forward P/E of 27.29.
We can also see that ORCL currently has a PEG ratio of 2.58. 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 2.04 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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