Oracle (ORCL) has been a popular stock on Zacks.com recently, with a +8% return over the past month, outperforming the Zacks S&P 500 Composite. The Zacks Computer – Software industry, which includes Oracle, has also seen a 7.1% gain during this time. The key question now is what could influence the stock’s performance in the short term.
When analyzing a stock’s performance, earnings estimate revisions are crucial. Zacks prioritizes evaluating changes in a company’s earnings outlook, as this impacts the fair value of its shares. When earnings estimates increase, so does the fair value of the stock, leading to price appreciation. Oracle is expected to post earnings of $1.64 per share for the current quarter, with a year-over-year change of -1.8%.
The consensus earnings estimate for the current fiscal year is $5.58, representing a +9% change from the prior year, while for the next fiscal year, the estimate is $6.15, indicating a +10.1% change from the previous year. Due to recent consensus estimate changes, Oracle has a Zacks Rank #2 (Buy), suggesting a positive near-term price direction.
In terms of revenue growth forecast, Oracle is expected to see increases in sales for the current and next fiscal years. The consensus sales estimate for the current quarter is $14.56 billion, reflecting a +5.2% year-over-year change. Estimates for the current and next fiscal years are $53.22 billion and $57.5 billion, indicating changes of +6.5% and +8% respectively.
Oracle’s reported revenue in the last quarter was $13.28 billion, with a year-over-year change of +7.1%, and EPS of $1.41 compared to $1.22 a year ago. The company has consistently surpassed consensus EPS estimates in the past four quarters.
Valuation is also essential when making investment decisions. Oracle has a Zacks Value Style Score of D, indicating it is trading at a premium to its peers. Analyzing various valuation metrics helps determine whether a stock is fairly valued, overvalued, or undervalued.
Overall, the information provided on Zacks.com can help investors understand Oracle’s performance potential. While market rumors may be circulating, Oracle’s Zacks Rank #2 suggests it could outperform the broader market in the near term. Investors looking for more recommendations can download the 7 best stocks for the next 30 days from Zacks Investment Research.
In conclusion, Oracle’s performance in the short term will likely be influenced by earnings estimates, revenue growth, historical surprises, and valuation metrics. By closely monitoring these factors, investors can make more informed decisions regarding Oracle’s stock.
Article Source
https://ca.finance.yahoo.com/news/investors-heavily-search-oracle-corporation-130015305.html
