Okta (OKTA) ended the recent trading session at $88.18, demonstrating a +1.66% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.9%.
Heading into today, shares of the cloud identity management company had lost 5.95% over the past month, lagging the Computer and Technology sector's loss of 1.96% and the S&P 500's loss of 0.16%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company is slated to reveal its earnings on March 4, 2026. The company is predicted to post an EPS of $0.85, indicating a 8.97% growth compared to the equivalent quarter last 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 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.01% increase. Okta presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 23.78 right now. Its industry sports an average Forward P/E of 42.66, so one might conclude that Okta is trading at a discount comparatively.
Also, we should mention that OKTA has a PEG ratio of 1.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. OKTA's industry had an average PEG ratio of 2.46 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 29% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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