Back to top

Image: Bigstock

Okta (OKTA) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Read MoreHide Full Article

Okta (OKTA - Free Report) closed the most recent trading day at $74.07, moving +1.13% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 1.43%.

Coming into today, shares of the cloud identity management company had gained 1.99% in the past month. In that same time, the Computer and Technology sector lost 0.04%, while the S&P 500 lost 0.54%.

The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company is slated to reveal its earnings on December 3, 2024. The company is forecasted to report an EPS of $0.57, showcasing a 29.55% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $649.35 million, indicating a 11.19% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.61 per share and revenue of $2.56 billion, indicating changes of +63.13% and +13.19%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Okta. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 51.89% increase. Okta is currently a Zacks Rank #3 (Hold).

With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 28.11. For comparison, its industry has an average Forward P/E of 16.26, which means Okta is trading at a premium to the group.

Also, we should mention that OKTA has a PEG ratio of 1.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Okta, Inc. (OKTA) - free report >>

Published in