Okta (OKTA) closed the most recent trading day at $89.08, moving -1.18% from the previous trading session. This move lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.76%.
Shares of the cloud identity management company witnessed a loss of 0.85% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.34%, and the S&P 500's gain of 1.14%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. On that day, Okta is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 11.94%. Our most recent consensus estimate is calling for quarterly revenue of $729.17 million, up 9.65% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $2.88 billion, which would represent changes of +19.93% and +10.3%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.34% downward. Okta is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 26.74. This expresses a discount compared to the average Forward P/E of 70.9 of its industry.
We can additionally observe that OKTA currently boasts a PEG ratio of 1.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Security stocks are, on average, holding a PEG ratio of 2.82 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 211, finds itself in the bottom 15% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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