In the latest trading session, Okta (OKTA) closed at $92.23, marking a -1.81% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.65% for the day. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.82%.
The stock of cloud identity management company has risen by 3.69% in the past month, leading the Computer and Technology sector's loss of 1.6% and the S&P 500's gain of 1.15%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company is expected to report EPS of $0.85, up 8.97% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $749.15 million, indicating a 9.85% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.44 per share and revenue of $2.91 billion. These totals would mark changes of +22.42% and +11.31%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, there's been a 0.89% rise in the Zacks Consensus EPS estimate. Okta is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 27.28. This valuation marks a discount compared to its industry average Forward P/E of 53.86.
We can also see that OKTA currently has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OKTA's industry had an average PEG ratio of 2.82 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% of all industries, numbering over 250.
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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