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Why Okta (OKTA) Dipped More Than Broader Market Today
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Okta (OKTA - Free Report) ended the recent trading session at $89.55, demonstrating a -2.6% change from the preceding day's closing price. This change lagged the S&P 500's 0.06% loss on the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the cloud identity management company had gained 1.9% in the past month. In that same time, the Computer and Technology sector gained 2.88%, while the S&P 500 gained 1.99%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.85, marking a 8.97% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $749.1 million, reflecting a 9.84% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.44 per share and a revenue of $2.91 billion, signifying shifts of +22.42% and +11.32%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Okta. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. As of now, Okta holds a Zacks Rank of #3 (Hold).
Digging into valuation, Okta currently has a Forward P/E ratio of 26.71. This denotes a discount relative to the industry average Forward P/E of 52.16.
We can additionally observe that OKTA currently boasts a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Security industry stood at 2.8 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% 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.
To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.
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Why Okta (OKTA) Dipped More Than Broader Market Today
Okta (OKTA - Free Report) ended the recent trading session at $89.55, demonstrating a -2.6% change from the preceding day's closing price. This change lagged the S&P 500's 0.06% loss on the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the cloud identity management company had gained 1.9% in the past month. In that same time, the Computer and Technology sector gained 2.88%, while the S&P 500 gained 1.99%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.85, marking a 8.97% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $749.1 million, reflecting a 9.84% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.44 per share and a revenue of $2.91 billion, signifying shifts of +22.42% and +11.32%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Okta. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. As of now, Okta holds a Zacks Rank of #3 (Hold).
Digging into valuation, Okta currently has a Forward P/E ratio of 26.71. This denotes a discount relative to the industry average Forward P/E of 52.16.
We can additionally observe that OKTA currently boasts a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Security industry stood at 2.8 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% 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.
To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.