Okta (OKTA) Stock Declines While Market Improves: Some Information for Investors
Okta (OKTA) closed the most recent trading day at $81.88, moving -0.32% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.23%. Meanwhile, the Dow gained 0.37%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the cloud identity management company had lost 2.05% over the past month. This has lagged the Computer and Technology sector's gain of 11.06% and the S&P 500's gain of 5.3% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on February 28, 2024. In that report, analysts expect Okta to post earnings of $0.51 per share. This would mark year-over-year growth of 70%. Meanwhile, our latest consensus estimate is calling for revenue of $586.25 million, up 14.95% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Okta possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 41.71. Its industry sports an average Forward P/E of 21.78, so one might conclude that Okta is trading at a premium comparatively.
We can also see that OKTA currently has a PEG ratio of 1.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software and Services industry had an average PEG ratio of 0.95.
The Internet - Software and Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.
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.
To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.
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Okta, Inc. (OKTA) : Free Stock Analysis Report
