Okta (OKTA) closed the most recent trading day at $85.69, moving -5.57% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.72%.
Shares of the cloud identity management company have appreciated by 4.94% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.88%, and the S&P 500's gain of 0.78%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. In that report, analysts expect Okta to post earnings of $0.85 per share. This would mark year-over-year growth of 8.97%. In the meantime, our current consensus estimate forecasts the revenue to be $749.1 million, indicating a 9.84% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.44 per share and revenue of $2.91 billion, which would represent changes of +22.42% and +11.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Okta. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Right now, Okta possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 26.36. This signifies a discount in comparison to the average Forward P/E of 52.09 for its industry.
Investors should also note that OKTA has a PEG ratio of 1.53 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security was holding an average PEG ratio of 2.84 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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