Oracle's Sentiment Strengthens Ahead of Earnings

Includes: CA, HPQ, IBM, ORCL, SAP
by: Jett Winter

Oracle is scheduled to release Q3 earnings this Thursday March 25th, after the market close.

Average analyst estimates for the Software Giant are $.38/share in EPS and $6.35 billion in Revenue. Twenty analysts track the stock with three upward EPS revisions in the last 30 days and no downward EPS revisions in the last 30 days. Last quarter, Oracle (NASDAQ:ORCL) beat average analysts expectations by .03/share, .39 vs. .36/share.

I always find this a tough period waiting to see if the company is going meet, exceed, or miss their earnings estimates. One thing I have discovered of value is to analyze sentiment moves in a stock ahead of the company’s earnings release. In the case of Oracle, I will use the piqqem sentiment index for Oracle to see how sentiment has changed in the last quarter, for the months within that quarter, and from the end of the reporting quarter thru today. I’m looking for moves or changes that may foreshadow the earning release.

Piqqem leverages the ‘wisdom of crowds’ by allowing its users to vote on the price direction of a stock and then applies its own propriety factors to calculate sentiment for a security. In their model, -100 is the lowest and 100 is the highest sentiment.

Sentiment for Oracle

Source Piqqem

The above chart shows Oracle’s sentiment moving up 5.5 pts from the point of their last earnings release. Sentiment for the S&P is down 26 pts in the same period, so Oracle’s sentiment strength is even more impressive given overall market conditions. On the Piqqem scale, Oracle’s sentiment rating of 40.33 is considered a buy and its absolute sentiment indicates a high quality stock. Only Oracle knows their actual results, but their current sentiment points to Oracle delivering good news on Thursday.

Disclosure: Disclosure: No Positions