Oracle (ORCL) Dips More Than Broader Market: What You Should Know

In the latest close session, Oracle (ORCL) was down 2.83% at $299.28. This change lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%. Coming into today, shares of the software maker had gained 1.94% in the past month. In that same time, the Computer and Technology sector gained 3.34%, while the S&P 500 gained 1.14%. The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. The company's earnings per share (EPS) are projected to be $1.63, reflecting a 10.88% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.15 billion, up 14.84% from the year-ago period. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.77 per share and a revenue of $66.87 billion, representing changes of +12.27% and +16.5%, respectively, from the prior year. Investors should also pay attention to any latest changes in analyst estimates for Oracle. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Oracle currently has a Zacks Rank of #2 (Buy). Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 45.49. This represents a premium compared to its industry average Forward P/E of 27.49. Also, we should mention that ORCL has a PEG ratio of 2.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software industry had an average PEG ratio of 2.06 as trading concluded yesterday. The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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