In the latest close session, Okta (OKTA) was up +2.62% at $73.01. The stock's performance was ahead of the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.26%.
Heading into today, shares of the cloud identity management company had lost 22.22% over the past month, lagging the Computer and Technology sector's loss of 2.23% and the S&P 500's loss of 0.25%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. The company is scheduled to release its earnings on March 4, 2026. The company is forecasted to report an EPS of $0.85, showcasing a 8.97% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $749.1 million, reflecting a 9.84% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.44 per share and a revenue of $2.91 billion, signifying shifts of +22.42% and +11.42%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.51% higher. Right now, Okta possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 19.56. This denotes a discount relative to the industry average Forward P/E of 38.
One should further note that OKTA currently holds a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.54.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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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