Okta (OKTA) closed the most recent trading day at $97.40, moving -1.73% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.79%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 0.92%.
The cloud identity management company's shares have seen a decrease of 5.68% over the last month, not keeping up with the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. In that report, analysts expect Okta to post earnings of $0.84 per share. This would mark year-over-year growth of 16.67%. Meanwhile, our latest consensus estimate is calling for revenue of $711.04 million, up 10.07% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.28 per share and revenue of $2.86 billion, which would represent changes of +16.73% and +9.44%, respectively, from the prior year.
Investors should also pay attention to any latest changes in 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% upward. Okta presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Okta currently has a Forward P/E ratio of 30.19. Its industry sports an average Forward P/E of 77.1, so one might conclude that Okta is trading at a discount comparatively.
It is also worth noting that OKTA currently has a PEG ratio of 1.78. 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 3.17.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 23, finds itself in the top 10% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
