Okta (OKTA) closed the most recent trading day at $92.00, moving -1.45% from the previous trading session. This change lagged the S&P 500's 0.26% gain on the day. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%.
The stock of cloud identity management company has risen by 5.58% in the past month, leading the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.85, marking a 8.97% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $749.1 million, indicating a 9.84% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.44 per share and a revenue of $2.91 billion, demonstrating changes of +22.42% and +11.32%, respectively, from the preceding year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Okta is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Okta currently has a Forward P/E ratio of 27.11. This signifies a discount in comparison to the average Forward P/E of 53.08 for its industry.
We can additionally observe that OKTA currently boasts a PEG ratio of 1.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Security industry had an average PEG ratio of 2.78.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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