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Here's Why Okta (OKTA) Fell More Than Broader Market
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In the latest market close, Okta (OKTA - Free Report) reached $83.08, with a -1.8% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 1.23%.
Prior to today's trading, shares of the cloud identity management company had lost 1.66% over the past month. This has lagged the Computer and Technology sector's loss of 0.1% and was narrower than the S&P 500's loss of 2.4% in that time.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. Meanwhile, our latest consensus estimate is calling for revenue of $559.76 million, up 16.37% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.18 per share and a revenue of $2.21 billion, signifying shifts of +3050% and +19.14%, respectively, from the last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. At present, Okta boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 71.57 right now. For comparison, its industry has an average Forward P/E of 24.12, which means Okta is trading at a premium to the group.
It is also worth noting that OKTA currently has a PEG ratio of 1.9. 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 the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 1.47.
The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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Here's Why Okta (OKTA) Fell More Than Broader Market
In the latest market close, Okta (OKTA - Free Report) reached $83.08, with a -1.8% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 1.23%.
Prior to today's trading, shares of the cloud identity management company had lost 1.66% over the past month. This has lagged the Computer and Technology sector's loss of 0.1% and was narrower than the S&P 500's loss of 2.4% in that time.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. Meanwhile, our latest consensus estimate is calling for revenue of $559.76 million, up 16.37% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.18 per share and a revenue of $2.21 billion, signifying shifts of +3050% and +19.14%, respectively, from the last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. At present, Okta boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 71.57 right now. For comparison, its industry has an average Forward P/E of 24.12, which means Okta is trading at a premium to the group.
It is also worth noting that OKTA currently has a PEG ratio of 1.9. 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 the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 1.47.
The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.