Okta (OKTA) Stock Declines While Market Improves: Some Information for Investors
Okta (OKTA) closed the most recent trading day at $84.51, moving -0.65% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.
Shares of the cloud identity management company witnessed a loss of 6.11% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.21% and the S&P 500's gain of 2.48%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. 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 latest consensus estimate predicts the revenue to be $586.25 million, indicating a 14.95% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.48 per share and a revenue of $2.24 billion, demonstrating changes of +3800% and +20.8%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, there's been a 1.15% rise in the Zacks Consensus EPS estimate. As of now, Okta holds a Zacks Rank of #2 (Buy).
With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 57.29. This denotes a premium relative to the industry's average Forward P/E of 23.46.
Also, we should mention that OKTA has a PEG ratio of 1.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software and Services industry stood at 1.15 at the close of the market yesterday.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Okta, Inc. (OKTA) : Free Stock Analysis Report
