The latest trading session saw Okta (OKTA) ending at $101.63, denoting a -0.1% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 3.46%. Elsewhere, the Dow lost 2.5%, while the tech-heavy Nasdaq lost 4.31%.
Shares of the cloud identity management company have depreciated by 6.48% over the course of the past month, outperforming the Computer and Technology sector's loss of 7.24% and lagging the S&P 500's loss of 5.27%.
The upcoming earnings release of Okta will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.76, reflecting a 16.92% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $679.59 million, up 10.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.17 per share and a revenue of $2.86 billion, indicating changes of +12.81% and +9.48%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 5.66% rise in the Zacks Consensus EPS estimate. Okta is currently a Zacks Rank #2 (Buy).
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 28.79. For comparison, its industry has an average Forward P/E of 52.5, which means Okta is trading at a discount to the group.
It's also important to note that OKTA currently trades at a PEG ratio of 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.76.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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