Oracle (ORCL) Stock Sinks As Market Gains: Here's Why

In the latest market close, Oracle (ORCL) reached $128.62, with a -0.88% movement compared to the previous day. This change lagged the S&P 500's 0.13% gain on the day. At the same time, the Dow lost 1.33%, and the tech-heavy Nasdaq lost 0.13%.The software maker's shares have seen a decrease of 14.88% over the last month, not keeping up with the Computer and Technology sector's loss of 9.27% and the S&P 500's loss of 6.3%.The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. The company is expected to report EPS of $1.64, up 0.61% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.56 billion, up 8.93% from the prior-year quarter.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.04 per share and revenue of $57.06 billion, indicating changes of +8.63% and +7.74%, respectively, compared to the previous year.It is also important to note the recent changes to analyst estimates for Oracle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 0.48% fall in the Zacks Consensus EPS estimate. Right now, Oracle possesses a Zacks Rank of #4 (Sell).In terms of valuation, Oracle is presently being traded at a Forward P/E ratio of 21.5. For comparison, its industry has an average Forward P/E of 23.74, which means Oracle is trading at a discount to the group.We can additionally observe that ORCL currently boasts a PEG ratio of 2.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 2.11 at the close of the market yesterday.The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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