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Okta (OKTA) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Okta (OKTA - Free Report) closed at $146.77, marking a -1.15% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the cloud identity management company had gained 23.77% over the past month, outpacing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
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 $0.96, marking a 5.49% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $792.14 million, up 8.81% from the year-ago period.
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.
Investors should also pay attention to any latest changes in analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. Okta presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 38.78. This represents a discount compared to its industry average Forward P/E of 50.32.
Meanwhile, OKTA's PEG ratio is currently 2.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security was holding an average PEG ratio of 3.31 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Okta (OKTA) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Okta (OKTA - Free Report) closed at $146.77, marking a -1.15% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the cloud identity management company had gained 23.77% over the past month, outpacing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
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 $0.96, marking a 5.49% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $792.14 million, up 8.81% from the year-ago period.
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.
Investors should also pay attention to any latest changes in analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. Okta presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 38.78. This represents a discount compared to its industry average Forward P/E of 50.32.
Meanwhile, OKTA's PEG ratio is currently 2.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security was holding an average PEG ratio of 3.31 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.