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Okta (OKTA) Increases Despite Market Slip: Here's What You Need to Know
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Okta (OKTA - Free Report) closed at $77.64 in the latest trading session, marking a +2.48% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.64%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.59%.
Shares of the cloud identity management company witnessed a loss of 6.58% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 13.17%, and the S&P 500's gain of 9.33%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. The company is expected to report EPS of $0.85, down 1.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $751.88 million, up 9.28% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $3.18 billion, indicating changes of +8.29% and +8.96%, respectively, from the former 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 0.59% rise in the Zacks Consensus EPS estimate. Okta is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 19.99. For comparison, its industry has an average Forward P/E of 33.48, which means Okta is trading at a discount to the group.
It is also worth noting that OKTA currently has a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Security industry currently had an average PEG ratio of 2.5 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Okta (OKTA) Increases Despite Market Slip: Here's What You Need to Know
Okta (OKTA - Free Report) closed at $77.64 in the latest trading session, marking a +2.48% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.64%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.59%.
Shares of the cloud identity management company witnessed a loss of 6.58% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 13.17%, and the S&P 500's gain of 9.33%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. The company is expected to report EPS of $0.85, down 1.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $751.88 million, up 9.28% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $3.18 billion, indicating changes of +8.29% and +8.96%, respectively, from the former 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 0.59% rise in the Zacks Consensus EPS estimate. Okta is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 19.99. For comparison, its industry has an average Forward P/E of 33.48, which means Okta is trading at a discount to the group.
It is also worth noting that OKTA currently has a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Security industry currently had an average PEG ratio of 2.5 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.