Oracle (ORCL) Ascends While Market Falls: Some Facts to Note

Oracle (ORCL) Ascends While Market Falls: Some Facts to Note

In the latest market close, Oracle (ORCL Quick QuoteORCL – Free Report) reached $114.15, with a +0.96% movement compared to the previous day. The stock outpaced the S&P 500’s daily loss of 0.08%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

The software maker’s stock has climbed by 4.45% in the past month, exceeding the Computer and Technology sector’s gain of 2.9% and the S&P 500’s gain of 1.42%.

Market participants will be closely following the financial results of Oracle in its upcoming release. The company is forecasted to report an EPS of $1.32, showcasing a 9.09% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $13.05 billion, showing a 6.32% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.54 per share and a revenue of $53.58 billion, representing changes of +8.2% and +7.26%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. 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).

In terms of valuation, Oracle is presently being traded at a Forward P/E ratio of 20.42. Its industry sports an average Forward P/E of 27.11, so one might conclude that Oracle is trading at a discount comparatively.

We can also see that ORCL currently has a PEG ratio of 2.33. 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. The average PEG ratio for the Computer – Software industry stood at 2.4 at the close of the market yesterday.

The Computer – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 31% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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