Back to top

Image: Bigstock

Okta (OKTA) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

Okta (OKTA - Free Report) ended the recent trading session at $81.16, demonstrating a +2.54% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.91%. Elsewhere, the Dow gained 1.43%, while the tech-heavy Nasdaq added 0.67%.

Heading into today, shares of the cloud identity management company had lost 12.07% over the past month, lagging the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 1.24%.

Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on December 2, 2025. The company is forecasted to report an EPS of $0.75, showcasing a 11.94% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $730 million, showing a 9.77% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.37 per share and revenue of $2.88 billion, indicating changes of +19.93% and +10.45%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Okta currently has a Zacks Rank of #3 (Hold).

Investors should also note Okta's current valuation metrics, including its Forward P/E ratio of 23.48. This valuation marks a discount compared to its industry average Forward P/E of 62.29.

We can also see that OKTA currently has a PEG ratio of 1.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. OKTA's industry had an average PEG ratio of 2.56 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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