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

Oracle (ORCL) closed the most recent trading day at $181.41, moving -1.86% from the previous trading session. This change lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a drop of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.97%.Coming into today, shares of the software maker had gained 8.72% in the past month. In that same time, the Computer and Technology sector gained 0.06%, while the S&P 500 gained 3.51%.Analysts and investors alike will be keeping a close eye on the performance of Oracle in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.48, marking a 10.45% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $14.12 billion, up 9.14% from the prior-year quarter.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.20 per share and revenue of $58.02 billion. These totals would mark changes of +11.51% and +9.55%, respectively, from last year.Investors might also notice recent changes to analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Oracle currently has a Zacks Rank of #3 (Hold).Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 29.82. This represents a discount compared to its industry's average Forward P/E of 31.89.It's also important to note that ORCL currently trades at a PEG ratio of 2.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.5.The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks