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Okta (OKTA) Advances While Market Declines: Some Information for Investors

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The latest trading session saw Okta (OKTA - Free Report) ending at $117.07, denoting a +1.18% adjustment from its last day's close. This change outpaced the S&P 500's 0.77% loss on the day. Meanwhile, the Dow experienced a drop of 0.95%, and the technology-dominated Nasdaq saw a decrease of 0.87%.

Heading into today, shares of the cloud identity management company had gained 26.82% over the past month, outpacing the Computer and Technology sector's gain of 16.73% and the S&P 500's gain of 11.54% in that time.

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 May 27, 2025. The company is forecasted to report an EPS of $0.77, showcasing a 18.46% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $679.73 million, indicating a 10.17% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.19 per share and revenue of $2.86 billion. These totals would mark changes of +13.52% and +9.41%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.28% lower within the past month. Okta is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Okta is currently exchanging hands at a Forward P/E ratio of 36.25. This expresses a discount compared to the average Forward P/E of 67.31 of its industry.

Investors should also note that OKTA has a PEG ratio of 2.47 right now. 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 average PEG ratio for the Security industry stood at 3.42 at the close of the market yesterday.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% 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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