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

In the latest trading session, Oracle (ORCL) closed at $145.74, marking a +2.74% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.79% for the day. Elsewhere, the Dow saw an upswing of 1.71%, while the tech-heavy Nasdaq appreciated by 2.59%.

Heading into today, shares of the software maker had lost 1.33% over the past month, lagging the Computer and Technology sector's loss of 0.46% and the S&P 500's gain of 1.72%.

Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. On that day, Oracle is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 17.01%. In the meantime, our current consensus estimate forecasts the revenue to be $19.13 billion, indicating a 28.14% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $8.03 per share and a revenue of $89.73 billion, demonstrating changes of +5.24% and +33.21%, respectively, from the preceding year.

It is also important to note the recent changes 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. As of now, Oracle holds a Zacks Rank of #3 (Hold).

Investors should also note Oracle's current valuation metrics, including its Forward P/E ratio of 17.66. This expresses a premium compared to the average Forward P/E of 17.47 of its industry.

It's also important to note that ORCL currently trades at a PEG ratio of 0.72. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.57.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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