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Okta (OKTA) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest close session, Okta (OKTA - Free Report) was down 3.3% at $73.65. The stock's change was less than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 1.62%, and the Nasdaq, a tech-heavy index, added 0.89%.
The stock of cloud identity management company has fallen by 3.77% in the past month, lagging the Computer and Technology sector's gain of 20.71% and the S&P 500's gain of 12.23%.
Market participants will be closely following the financial results of Okta in its upcoming release. On that day, Okta is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 1.16%. In the meantime, our current consensus estimate forecasts the revenue to be $751.34 million, indicating a 9.21% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $3.18 billion, which would represent changes of +8.29% and +8.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Okta is currently a Zacks Rank #3 (Hold).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 20.1. This indicates a discount in contrast to its industry's Forward P/E of 33.46.
It is also worth noting that OKTA currently has a PEG ratio of 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Security industry stood at 2.54 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 16% of all 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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Okta (OKTA) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest close session, Okta (OKTA - Free Report) was down 3.3% at $73.65. The stock's change was less than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 1.62%, and the Nasdaq, a tech-heavy index, added 0.89%.
The stock of cloud identity management company has fallen by 3.77% in the past month, lagging the Computer and Technology sector's gain of 20.71% and the S&P 500's gain of 12.23%.
Market participants will be closely following the financial results of Okta in its upcoming release. On that day, Okta is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 1.16%. In the meantime, our current consensus estimate forecasts the revenue to be $751.34 million, indicating a 9.21% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $3.18 billion, which would represent changes of +8.29% and +8.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Okta is currently a Zacks Rank #3 (Hold).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 20.1. This indicates a discount in contrast to its industry's Forward P/E of 33.46.
It is also worth noting that OKTA currently has a PEG ratio of 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Security industry stood at 2.54 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 16% of all 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.