In the latest close session, Okta (OKTA) was down 4.51% at $86.97. This change lagged the S&P 500's 1.17% loss on the day. On the other hand, the Dow registered a loss of 0.53%, and the technology-centric Nasdaq decreased by 2.04%.
The stock of cloud identity management company has fallen by 2.81% in the past month, lagging the Computer and Technology sector's gain of 5.49% and the S&P 500's gain of 2.12%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company is slated to reveal its earnings on December 2, 2025. The company's upcoming EPS is projected at $0.75, signifying a 11.94% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $729.17 million, up 9.65% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.37 per share and revenue of $2.88 billion, indicating changes of +19.93% and +13.73%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Okta is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Okta is holding a Forward P/E ratio of 27.02. This signifies a discount in comparison to the average Forward P/E of 74.85 for its industry.
We can additionally observe that OKTA currently boasts a PEG ratio of 1.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. OKTA's industry had an average PEG ratio of 2.92 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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