In the latest close session, Okta (OKTA) was down 1.41% at $84.48. This change lagged the S&P 500's 0.43% loss on the day. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.94%.
The cloud identity management company's stock has dropped by 0.9% in the past month, falling short of the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 0.89%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.85, signifying a 8.97% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $749.1 million, indicating a 9.84% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.44 per share and a revenue of $2.91 billion, representing changes of +22.42% and +11.32%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. As of now, Okta holds a Zacks Rank of #3 (Hold).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 24.89. This valuation marks a discount compared to its industry average Forward P/E of 49.35.
It's also important to note that OKTA currently trades at a PEG ratio of 1.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.5.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 19% of all industries, numbering over 250.
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.
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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