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

In the latest trading session, Oracle (ORCL) closed at $172.80, marking a -1.2% move from the previous day. This change lagged the S&P 500's 0.01% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 0.17%. Heading into today, shares of the software maker had lost 11.31% over the past month, lagging the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 0.78%.Investors will be eagerly watching for the performance of Oracle in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.7, marking a 15.65% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $16.9 billion, showing a 19.63% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of $7.42 per share and revenue of $66.97 billion, which would represent changes of +23.05% and +16.68%, respectively, from the prior year. Investors should also take note of any recent adjustments 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 business operations and its ability to generate profits. Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 1.03% increase. Oracle is currently a Zacks Rank #3 (Hold). From a valuation perspective, Oracle is currently exchanging hands at a Forward P/E ratio of 23.58. This valuation marks a premium compared to its industry average Forward P/E of 21.6. We can also see that ORCL currently has a PEG ratio of 1.24. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.82. The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free 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 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