Oracle (ORCL) closed at $87.79 in the latest trading session, marking a -0.59% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.42%. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Prior to today’s trading, shares of the software maker had lost 14.8% over the past month. This has lagged the Computer and Technology sector’s loss of 4.18% and the S&P 500’s gain of 0.39% in that time.
Oracle will be looking to display strength as it nears its next earnings release. In that report, analysts expect Oracle to post earnings of $1.17 per share. This would mark year-over-year growth of 0.86%. Our most recent consensus estimate is calling for quarterly revenue of $10.5 billion, up 4.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.77 per share and revenue of $42.31 billion. These totals would mark changes of +2.14% and +4.51%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Oracle. Recent revisions tend to reflect the latest 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. Oracle currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Oracle has a Forward P/E ratio of 18.5 right now. Its industry sports an average Forward P/E of 40.55, so we one might conclude that Oracle is trading at a discount comparatively.
Meanwhile, ORCL’s PEG ratio is currently 2.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. ORCL’s industry had an average PEG ratio of 2.89 as of yesterday’s close.
The Computer – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related 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
