In the latest close session, Okta (OKTA) was up +1.65% at $88.48. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%.
Heading into today, shares of the cloud identity management company had lost 3.15% over the past month, lagging the Computer and Technology sector's loss of 0.5% and the S&P 500's gain of 0.16%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.75, indicating a 11.94% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $729.17 million, up 9.65% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.37 per share and a revenue of $2.88 billion, indicating changes of +19.93% and +10.38%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Okta holds a Zacks Rank of #4 (Sell).
Looking at its valuation, Okta is holding a Forward P/E ratio of 25.82. This denotes a discount relative to the industry average Forward P/E of 70.08.
Investors should also note that OKTA has a PEG ratio of 1.48 right now. 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 2.83 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 19% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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