Okta (OKTA) closed the latest trading day at $126.44, indicating a -0.68% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.02%.
Shares of the cloud identity management company have appreciated by 29.99% over the course of the past month, outperforming the Computer and Technology sector's gain of 18.89% and the S&P 500's gain of 13.05%.
The upcoming earnings release of Okta will be of great interest to investors. The company's earnings report is expected on May 27, 2025. The company's upcoming EPS is projected at $0.77, signifying a 18.46% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $679.73 million, showing a 10.17% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.19 per share and a revenue of $2.86 billion, indicating changes of +13.52% and +9.41%, respectively, from the former 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 company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.27% decrease. Okta is currently a Zacks Rank #3 (Hold).
With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 39.88. This represents a discount compared to its industry's average Forward P/E of 71.1.
We can additionally observe that OKTA currently boasts a PEG ratio of 2.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security was holding an average PEG ratio of 3.15 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% of over 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.
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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