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Okta (OKTA) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, Okta (OKTA - Free Report) closed at $226.07, marking a +2.75% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.6%. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Shares of the cloud identity management company witnessed a gain of 8.82% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.18%, and the S&P 500's loss of 0.79%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. In that report, analysts expect Okta to post earnings of $0.93 per share. This would mark year-over-year growth of 13.41%. Meanwhile, our latest consensus estimate is calling for revenue of $815.52 million, up 9.91% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $3.22 billion. These totals would mark changes of +12.29% and +10.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Okta presently features a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Okta is holding a Forward P/E ratio of 56.02. This signifies no noticeable deviation in comparison to the average Forward P/E of 56.02 for its industry.
It's also important to note that OKTA currently trades at a PEG ratio of 3.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security industry had an average PEG ratio of 3.54 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 30, finds itself in the top 13% echelons of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Okta (OKTA) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Okta (OKTA - Free Report) closed at $226.07, marking a +2.75% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.6%. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Shares of the cloud identity management company witnessed a gain of 8.82% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.18%, and the S&P 500's loss of 0.79%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. In that report, analysts expect Okta to post earnings of $0.93 per share. This would mark year-over-year growth of 13.41%. Meanwhile, our latest consensus estimate is calling for revenue of $815.52 million, up 9.91% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $3.22 billion. These totals would mark changes of +12.29% and +10.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Okta presently features a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Okta is holding a Forward P/E ratio of 56.02. This signifies no noticeable deviation in comparison to the average Forward P/E of 56.02 for its industry.
It's also important to note that OKTA currently trades at a PEG ratio of 3.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security industry had an average PEG ratio of 3.54 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 30, finds itself in the top 13% echelons of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.