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Okta (OKTA - Free Report) closed the most recent trading day at $194.02, moving +2.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.02%.
Shares of the cloud identity management company witnessed a loss of 0.73% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.28%, and underperforming the S&P 500's gain of 0.67%.
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 $0.93 per share, which would represent year-over-year growth of 13.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $815.52 million, up 9.91% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.93 per share and a revenue of $3.22 billion, signifying shifts of +12.29% and +10.44%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Okta is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Okta is currently exchanging hands at a Forward P/E ratio of 48.36. This indicates a discount in contrast to its industry's Forward P/E of 49.76.
One should further note that OKTA currently holds a PEG ratio of 2.89. 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 industry had an average PEG ratio of 2.89 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why Okta (OKTA) Outpaced the Stock Market Today
Okta (OKTA - Free Report) closed the most recent trading day at $194.02, moving +2.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.02%.
Shares of the cloud identity management company witnessed a loss of 0.73% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.28%, and underperforming the S&P 500's gain of 0.67%.
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 $0.93 per share, which would represent year-over-year growth of 13.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $815.52 million, up 9.91% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.93 per share and a revenue of $3.22 billion, signifying shifts of +12.29% and +10.44%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Okta is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Okta is currently exchanging hands at a Forward P/E ratio of 48.36. This indicates a discount in contrast to its industry's Forward P/E of 49.76.
One should further note that OKTA currently holds a PEG ratio of 2.89. 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 industry had an average PEG ratio of 2.89 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.