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Okta (OKTA) Outpaces Stock Market Gains: What You Should Know
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Okta (OKTA - Free Report) closed at $72.23 in the latest trading session, marking a +1.2% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.73%, and the Nasdaq, a tech-heavy index, added 0.94%.
Coming into today, shares of the cloud identity management company had gained 1.51% in the past month. In that same time, the Computer and Technology sector lost 3.27%, while the S&P 500 lost 3.8%.
Wall Street will be looking for positivity from Okta as it approaches its next earnings report date. This is expected to be August 30, 2023. The company is expected to report EPS of $0.21, up 310% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $534.06 million, up 18.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $2.18 billion, which would represent changes of +2375% and +17.41%, respectively, from the prior year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Okta is currently a Zacks Rank #3 (Hold).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 78.43. This valuation marks a premium compared to its industry's average Forward P/E of 22.4.
Meanwhile, OKTA's PEG ratio is currently 1.88. 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. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Okta (OKTA) Outpaces Stock Market Gains: What You Should Know
Okta (OKTA - Free Report) closed at $72.23 in the latest trading session, marking a +1.2% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.73%, and the Nasdaq, a tech-heavy index, added 0.94%.
Coming into today, shares of the cloud identity management company had gained 1.51% in the past month. In that same time, the Computer and Technology sector lost 3.27%, while the S&P 500 lost 3.8%.
Wall Street will be looking for positivity from Okta as it approaches its next earnings report date. This is expected to be August 30, 2023. The company is expected to report EPS of $0.21, up 310% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $534.06 million, up 18.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $2.18 billion, which would represent changes of +2375% and +17.41%, respectively, from the prior year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Okta is currently a Zacks Rank #3 (Hold).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 78.43. This valuation marks a premium compared to its industry's average Forward P/E of 22.4.
Meanwhile, OKTA's PEG ratio is currently 1.88. 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. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.