Is It Time To Consider Buying Okta, Inc. (NASDAQ:OKTA)?
Today we're going to take a look at the well-established Okta, Inc. (NASDAQ:OKTA). The company's stock saw a significant share price rise of 43% in the past couple of months on the NASDAQGS. The company is inching closer to its yearly highs following the recent share price climb. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Okta’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Okta
What's The Opportunity In Okta?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 19% below our intrinsic value, which means if you buy Okta today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $130.66, then there’s not much of an upside to gain from mispricing. What's more, Okta’s share price may be more stable over time (relative to the market), as indicated by its low beta.
What kind of growth will Okta generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Okta's earnings over the next few years are expected to increase by 84%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? It seems like the market has already priced in OKTA’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on OKTA, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about Okta as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for Okta and we think they deserve your attention.
If you are no longer interested in Okta, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
