In the latest close session, Okta (OKTA) was down 1.04% at $84.69. This move lagged the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq depreciated by 0.26%.
Heading into today, shares of the cloud identity management company had lost 3.93% over the past month, lagging the Computer and Technology sector's gain of 6.16% and the S&P 500's gain of 4.57%.
Market participants will be closely following the financial results of Okta in its upcoming release. The company plans to announce its earnings on December 2, 2025. On that day, Okta is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 11.94%. Meanwhile, the latest consensus estimate predicts the revenue to be $729.17 million, indicating a 9.65% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.37 per share and a revenue of $2.88 billion, representing changes of +19.93% and +10.38%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Okta is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Okta is presently being traded at a Forward P/E ratio of 25.39. This denotes a discount relative to the industry average Forward P/E of 74.05.
Also, we should mention that OKTA has a PEG ratio of 1.46. 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. The Security was holding an average PEG ratio of 2.77 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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