Okta (OKTA) closed at $89.83 in the latest trading session, marking a -1.32% move from the prior day. This move lagged the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the cloud identity management company had lost 4.81% over the past month, lagging the Computer and Technology sector's gain of 1.1% and the S&P 500's gain of 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on August 26, 2025. In that report, analysts expect Okta to post earnings of $0.84 per share. This would mark year-over-year growth of 16.67%. At the same time, our most recent consensus estimate is projecting a revenue of $711.04 million, reflecting a 10.07% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.28 per share and revenue of $2.86 billion, which would represent changes of +16.73% and +9.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Okta holds a Zacks Rank of #3 (Hold).
With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 27.73. This represents a discount compared to its industry average Forward P/E of 63.52.
It is also worth noting that OKTA currently has a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.64.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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