Okta (OKTA) recently saw a 1.91% daily gain, outperforming the S&P 500, despite its shares declining 3.15% over the past month. The cloud identity management company is projected to report quarterly EPS of $0.75 (+11.94% YoY) and revenue of $729.17 million (+9.65% YoY), with full-year estimates also showing growth. However, recent analyst EPS estimates have shifted 0.74% downward, resulting in a Zacks Rank of #4 (Sell) for OKTA, even as it trades at a Forward P/E of 26.97 and a PEG ratio of 1.55, which are discounts to its industry, an industry itself ranked in the bottom 21%.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Okta (OKTA) Beats Stock Market Upswing: What Investors Need to Know Read MoreHide Full Article Okta (OKTA - Free Report) ended the recent trading session at $92.63, demonstrating a +1.91% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.58%. Coming into today, shares of the cloud identity management company had lost 3.15% in the past month. In that same time, the Computer and Technology sector gained 6.37%, while the S&P 500 gained 3.68%. The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. The company is expected to report EPS of $0.75, up 11.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $729.17 million, up 9.65% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $3.37 per share and a revenue of $2.88 billion, demonstrating changes of +19.93% and +10.3%, respectively, from the preceding year. It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate has shifted 0.74% downward. Right now, Okta possesses a Zacks Rank of 4 (Sell). In the context of valuation, Okta is at present trading with a Forward P/E ratio of 26.97. This indicates a discount in contrast to its industry's Forward P/E of 67.83. We can additionally observe that OKTA currently boasts a PEG ratio of 1.55. 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. Security stocks are, on average, holding a PEG ratio of 2.82 based on yesterday's closing prices. The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 197, this industry ranks in the bottom 21% of all industries, numbering over 250. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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. Beyond Nvidia: AI's Second Wave Is Here The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years. Image: Bigstock Okta (OKTA) Beats Stock Market Upswing: What Investors Need to Know Okta (OKTA - Free Report) ended the recent trading session at $92.63, demonstrating a +1.91% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.58%. Coming into today, shares of the cloud identity management company had lost 3.15% in the past month. In that same time, the Computer and Technology sector gained 6.37%, while the S&P 500 gained 3.68%. The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. The company is expected to report EPS of $0.75, up 11.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $729.17 million, up 9.65% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $3.37 per share and a revenue of $2.88 billion, demonstrating changes of +19.93% and +10.3%, respectively, from the preceding year. It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate has shifted 0.74% downward. Right now, Okta possesses a Zacks Rank of 4 (Sell). In the context of valuation, Okta is at present trading with a Forward P/E ratio of 26.97. This indicates a discount in contrast to its industry's Forward P/E of 67.83. We can additionally observe that OKTA currently boasts a PEG ratio of 1.55. 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. Security stocks are, on average, holding a PEG ratio of 2.82 based on yesterday's closing prices. The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 197, this industry ranks in the bottom 21% of all industries, numbering over 250. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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. Beyond Nvidia: AI's Second Wave Is Here The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years. See "2nd Wave" AI stocks now >> Okta (OKTA) experienced a daily gain of 1.91%, outperforming the S&P 500's 0.58% rise. Despite this recent uptick, its shares have significantly underperformed over the past month, declining 3.15% while the broader Computer and Technology sector gained 6.37% and the S&P 500 rose 3.68%. The company is projected to report quarterly EPS of $0.75 (+11.94% YoY) and revenue of $729.17 million (+9.65% YoY), with full-year estimates also indicating growth. Despite these positive growth projections, analyst sentiment appears to be deteriorating, evidenced by a 0.74% downward revision in the Zacks Consensus EPS estimate over the past month, leading to a Zacks Rank of 4 (Sell). This negative revision suggests waning confidence in the company's near-term profit potential, aligning with the overall mildly negative sentiment score of -0.25 and cautious tone. In terms of valuation, OKTA trades at a Forward P/E of 26.97 and a PEG ratio of 1.55, which represent discounts compared to its industry's average Forward P/E of 67.83 and the security industry's average PEG of 2.82. However, the broader security industry itself faces headwinds, holding a Zacks Industry Rank of 197, placing it in the bottom 21% of all industries, implying systemic underperformance risks.
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Request a DemoOverall Sentiment
mildly negative
Sentiment Score
-0.25
Ticker Sentiment
