Here's Why Oracle (ORCL) Fell More Than Broader Market

In the latest trading session, Oracle (ORCL) closed at $202.29, marking a -1.17% move from the previous day. This change lagged the S&P 500's daily loss of 0.19%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.1%. The stock of software maker has risen by 10.69% in the past month, leading the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.26%.The investment community will be closely monitoring the performance of Oracle in its forthcoming earnings report. In that report, analysts expect Oracle to post earnings of $1.7 per share. This would mark year-over-year growth of 15.65%. Meanwhile, the latest consensus estimate predicts the revenue to be $16.9 billion, indicating a 19.63% increase compared to the same quarter of the previous year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.38 per share and a revenue of $66.97 billion, representing changes of +22.39% and +16.67%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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 past month, the Zacks Consensus EPS estimate has shifted 2.69% upward. At present, Oracle boasts a Zacks Rank of #3 (Hold). Digging into valuation, Oracle currently has a Forward P/E ratio of 27.73. For comparison, its industry has an average Forward P/E of 22.96, which means Oracle is trading at a premium to the group. It is also worth noting that ORCL currently has a PEG ratio of 1.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ORCL's industry had an average PEG ratio of 1.87 as of yesterday's close. The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks