Okta (OKTA) ended the recent trading session at $97.89, demonstrating a +2.36% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.07%. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq gained 0.18%.
Shares of the cloud identity management company witnessed a loss of 2.63% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.22%, and the S&P 500's gain of 5.71%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.84, marking a 16.67% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $711.04 million, showing a 10.07% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.28 per share and a revenue of $2.86 billion, signifying shifts of +16.73% and +9.44%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Okta is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 29.13 right now. This denotes a discount relative to the industry average Forward P/E of 74.92.
Also, we should mention that OKTA has a PEG ratio of 1.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. OKTA's industry had an average PEG ratio of 3.16 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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