Okta (OKTA) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Okta (OKTA) closed at $83.78, marking a -0.2% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.07% for the day.
The cloud identity management company's stock has climbed by 6.75% in the past month, exceeding the Computer and Technology sector's gain of 2.5% and the S&P 500's gain of 3.98%.
The upcoming earnings release of Okta will be of great interest to investors. The company is forecasted to report an EPS of $0.51, showcasing a 70% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $586.25 million, up 14.95% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.48 per share and revenue of $2.24 billion, indicating changes of +3800% and +20.8%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% higher. As of now, Okta holds a Zacks Rank of #2 (Buy).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 56.54. For comparison, its industry has an average Forward P/E of 23.62, which means Okta is trading at a premium to the group.
Investors should also note that OKTA has a PEG ratio of 1.48 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 1.1.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Okta, Inc. (OKTA) : Free Stock Analysis Report
