News

Oracle (ORCL) shares ended the last trading session 7.2% higher at $172.57. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.8% loss over the past four weeks.

The upswing in share price came after President Donald Trump unveiled a $500 billion artificial intelligence infrastructure partnership between the cloud computing and data storage giant and other AI heavyweights. The AI infrastructure deal, dubbed “Stargate,” involves Oracle, OpenAI (the Microsoft-backed parent of the generative AI ChatGPT program), top AI tech designer Nvidia and Tokyo-headquartered conglomerate SoftBank. The project includes an immediate $100 billion of investment in U.S. infrastructure for the first year and $500 billion over the next four years.

This software maker is expected to post quarterly earnings of $1.48 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $14.36 billion, up 8.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Oracle, the consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ORCL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Oracle belongs to the Zacks Computer - Software industry. Another stock from the same industry, Cadence Design Systems (CDNS), closed the last trading session 1.8% higher at $310.97. Over the past month, CDNS has returned 0.4%.

Cadence's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.82. Compared to the company's year-ago EPS, this represents a change of +31.9%. Cadence currently boasts a Zacks Rank of #3 (Hold).

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

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 Report

Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.