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Okta (OKTA) Stock Moves -1.86%: What You Should Know

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In the latest close session, Okta (OKTA - Free Report) was down 1.86% at $87.65. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.55%.

Coming into today, shares of the cloud identity management company had lost 2.61% in the past month. In that same time, the Computer and Technology sector gained 6.92%, while the S&P 500 gained 3.83%.

Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.75, signifying a 11.94% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $729.17 million, up 9.65% from the year-ago period.

OKTA's full-year Zacks Consensus Estimates are calling for earnings of $3.37 per share and revenue of $2.88 billion. These results would represent year-over-year changes of +19.93% and +10.38%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Okta. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Okta is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Okta currently has a Forward P/E ratio of 26.5. This valuation marks a discount compared to its industry average Forward P/E of 74.14.

One should further note that OKTA currently holds a PEG ratio of 1.52. 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 of the close of trade yesterday, the Security industry held an average PEG ratio of 2.91.

The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 208, finds itself in the bottom 16% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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