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Okta (OKTA) Registers a Bigger Fall Than the Market: Important Facts to Note
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Okta (OKTA - Free Report) closed the latest trading day at $89.34, indicating a -1.69% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.47%. Meanwhile, the Dow gained 0.37%, and the Nasdaq, a tech-heavy index, lost 1.35%.
The cloud identity management company's stock has dropped by 0.02% in the past month, exceeding the Computer and Technology sector's loss of 4.34% and the S&P 500's loss of 1.78%.
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. Alongside, our most recent consensus estimate is anticipating revenue of $668.8 million, indicating a 10.55% upward movement from the same quarter last year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Okta is holding a Zacks Rank of #1 (Strong Buy) right now.
From a valuation perspective, Okta is currently exchanging hands at a Forward P/E ratio of 31.25. For comparison, its industry has an average Forward P/E of 62.52, which means Okta is trading at a discount to the group.
One should further note that OKTA currently holds a PEG ratio of 1.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security industry currently had an average PEG ratio of 2.93 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% of all 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.
To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Okta (OKTA) Registers a Bigger Fall Than the Market: Important Facts to Note
Okta (OKTA - Free Report) closed the latest trading day at $89.34, indicating a -1.69% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.47%. Meanwhile, the Dow gained 0.37%, and the Nasdaq, a tech-heavy index, lost 1.35%.
The cloud identity management company's stock has dropped by 0.02% in the past month, exceeding the Computer and Technology sector's loss of 4.34% and the S&P 500's loss of 1.78%.
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. Alongside, our most recent consensus estimate is anticipating revenue of $668.8 million, indicating a 10.55% upward movement from the same quarter last year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Okta is holding a Zacks Rank of #1 (Strong Buy) right now.
From a valuation perspective, Okta is currently exchanging hands at a Forward P/E ratio of 31.25. For comparison, its industry has an average Forward P/E of 62.52, which means Okta is trading at a discount to the group.
One should further note that OKTA currently holds a PEG ratio of 1.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security industry currently had an average PEG ratio of 2.93 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% of all 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.
To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.