Oracle (ORCL) Sees a Drop: Key Insights You Should be Aware Of

In the latest trading session, Oracle (ORCL) closed at $168.54, reflecting a decline of -0.84% from the previous day's close. This change is more significant than the S&P 500's loss of 0.47%. In contrast, the Dow Jones Industrial Average managed to gain 0.37%, while the Nasdaq, which is predominantly composed of technology stocks, experienced a dip of -1.35%.

Looking back over the last month, Oracle's shares have increased by 7.38%, outperforming the broader Computer and Technology sector, which has seen a decline of -4.34%, as well as the S&P 500, which lost -1.78%.

Investors are eager to see Oracle's upcoming earnings report, as it is projected the company will announce an earnings per share (EPS) of $1.48, which represents a growth of 4.96% from the same quarter last year. Additionally, the consensus revenue estimate stands at $14.36 billion, highlighting an increase of 8.12% compared to the previous year's same quarter.

For the current fiscal year, Zacks Consensus Estimates suggest that Oracle’s earnings will reach $6.22 per share, with revenue anticipated to hit $57.65 billion. These figures mark significant increases of 11.87% and 8.85% respectively from the last year.

It's also important for investors to monitor any recent updates to analysts' forecasts for Oracle. Changes in these estimates typically reflect the evolving business environment. Positive revisions may indicate a more favorable business outlook for the company.

Research shows that alterations in earnings estimates can be closely related to stock price movements in the future. To leverage this information, a proprietary model known as the Zacks Rank has been developed. This model evaluates forecast changes and offers investors actionable ratings.

The Zacks Rank system categorizes stocks from #1 (Strong Buy) to #5 (Strong Sell). Historically, stocks rated as #1 have yielded an average annual return of +25% since 1988. In the last month, Oracle's Zacks Consensus EPS estimate has remained stable, placing the stock at a current Zacks Rank of #4 (Sell).

From a valuation standpoint, Oracle is presently trading at a Forward P/E ratio of 27.31, compared to the industry average of 28.76. This indicates that Oracle is trading at a discount relative to its industry peers.

Additionally, Oracle holds a PEG ratio of 2.69, which considers the company's anticipated earnings growth rate alongside its price. The average PEG ratio for stocks within the Computer - Software sector stands at 2.12, based on the latest closing prices.

The Computer - Software industry is part of the larger Computer and Technology sector, currently holding a Zacks Industry Rank of 146. This rank places it within the lowest 42% of all industries, of which there are more than 250.

The Zacks Industry Rank evaluates the strength of various industry groups by averaging the Zacks Rank of the individual stocks they contain. Notably, industries in the top half based on their ratings have historically outperformed those in the bottom half by a ratio of 2 to 1.

To stay updated, be sure to follow these key indicators and more on various investment platforms.

Oracle, Stocks, Earnings