In the latest close session, Okta (OKTA) was up +1.13% at $92.10. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%.
The stock of cloud identity management company has fallen by 8.01% in the past month, lagging the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
Market participants will be closely following the financial results of Okta in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 16.67% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $711.04 million, indicating a 10.07% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.28 per share and revenue of $2.86 billion, indicating changes of +16.73% and +9.44%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Okta possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 27.74. This denotes a discount relative to the industry average Forward P/E of 73.86.
We can also see that OKTA currently has a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Security industry had an average PEG ratio of 3.11 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 18% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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