Oracle (ORCL) Laps the Stock Market: Here's Why

In the latest close session, Oracle (ORCL) was up +1.82% at $240.11. The stock outperformed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.53%. Prior to today's trading, shares of the software maker had lost 5.9% lagged the Computer and Technology sector's gain of 2.37% and the S&P 500's gain of 1.52%.The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. On that day, Oracle is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 5.76%. Meanwhile, the latest consensus estimate predicts the revenue to be $15.01 billion, indicating a 12.83% increase compared to the same quarter of the previous year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.73 per share and a revenue of $66.6 billion, representing changes of +11.61% and +16.02%, respectively, from the prior year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oracle. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. Oracle presently features a Zacks Rank of #3 (Hold). In terms of valuation, Oracle is presently being traded at a Forward P/E ratio of 35.05. This valuation marks a premium compared to its industry average Forward P/E of 26.33. One should further note that ORCL currently holds a PEG ratio of 2.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.93. The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. 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