Okta (OKTA) closed the most recent trading day at $88.42, moving -3.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.45%, and the technology-centric Nasdaq decreased by 0.3%.
Heading into today, shares of the cloud identity management company had lost 0.01% over the past month, lagging the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 2.71%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 26, 2025. The company is predicted to post an EPS of $0.84, indicating a 16.67% growth compared to the equivalent quarter last 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.28 per share and a revenue of $2.86 billion, representing changes of +16.73% and +9.44%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Okta is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 27.89 right now. This indicates a discount in contrast to its industry's Forward P/E of 60.68.
Investors should also note that OKTA has a PEG ratio of 1.65 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security industry had an average PEG ratio of 2.36 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 38% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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