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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) ended the recent trading session at $140.46, demonstrating a +2.94% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.66%.
Shares of the cloud identity management company witnessed a gain of 0.84% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.58%, and the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. In that report, analysts expect Okta to post earnings of $0.96 per share. This would mark year-over-year growth of 5.49%. In the meantime, our current consensus estimate forecasts the revenue to be $792.14 million, indicating a 8.81% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and revenue of $3.2 billion, which would represent changes of +9.43% and +9.51%, respectively, from the prior year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% higher. At present, Okta boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Okta is presently being traded at a Forward P/E ratio of 35.64. This signifies a discount in comparison to the average Forward P/E of 47.54 for its industry.
It's also important to note that OKTA currently trades at a PEG ratio of 2.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 3.14 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Okta (OKTA) Increases Despite Market Slip: Here's What You Need to Know
Okta (OKTA - Free Report) ended the recent trading session at $140.46, demonstrating a +2.94% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.66%.
Shares of the cloud identity management company witnessed a gain of 0.84% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.58%, and the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. In that report, analysts expect Okta to post earnings of $0.96 per share. This would mark year-over-year growth of 5.49%. In the meantime, our current consensus estimate forecasts the revenue to be $792.14 million, indicating a 8.81% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and revenue of $3.2 billion, which would represent changes of +9.43% and +9.51%, respectively, from the prior year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% higher. At present, Okta boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Okta is presently being traded at a Forward P/E ratio of 35.64. This signifies a discount in comparison to the average Forward P/E of 47.54 for its industry.
It's also important to note that OKTA currently trades at a PEG ratio of 2.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 3.14 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.