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Okta (OKTA) Gains But Lags Market: What You Should Know
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The latest trading session saw Okta (OKTA - Free Report) ending at $97.47, denoting a +0.02% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.36%. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.51%.
Coming into today, shares of the cloud identity management company had gained 14.03% in the past month. In that same time, the Computer and Technology sector 0%, while the S&P 500 gained 2.11%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on March 3, 2025. The company is expected to report EPS of $0.73, up 15.87% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $668.8 million, reflecting a 10.55% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 2.69% higher. Right now, Okta possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 33.52. This represents a premium compared to its industry's average Forward P/E of 15.45.
Also, we should mention that OKTA has a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 1.66.
The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Okta (OKTA) Gains But Lags Market: What You Should Know
The latest trading session saw Okta (OKTA - Free Report) ending at $97.47, denoting a +0.02% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.36%. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.51%.
Coming into today, shares of the cloud identity management company had gained 14.03% in the past month. In that same time, the Computer and Technology sector 0%, while the S&P 500 gained 2.11%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on March 3, 2025. The company is expected to report EPS of $0.73, up 15.87% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $668.8 million, reflecting a 10.55% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 2.69% higher. Right now, Okta possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 33.52. This represents a premium compared to its industry's average Forward P/E of 15.45.
Also, we should mention that OKTA has a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 1.66.
The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.