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Okta (OKTA) Stock Sinks As Market Gains: What You Should Know
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Okta (OKTA - Free Report) closed at $75.56 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 11.35%.
Prior to today's trading, shares of the cloud identity management company had gained 9.5% over the past month. This has lagged the Computer and Technology sector's gain of 10.31% and outpaced the S&P 500's gain of 4.49% in that time.
Okta will be looking to display strength as it nears its next earnings release, which is expected to be March 1, 2023. On that day, Okta is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 155.56%. Meanwhile, our latest consensus estimate is calling for revenue of $488.99 million, up 27.67% from the prior-year quarter.
Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.63% higher within the past month. Okta is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 237.66 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.34.
Investors should also note that OKTA has a PEG ratio of 9.51 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software and Services was holding an average PEG ratio of 5.42 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Okta (OKTA) Stock Sinks As Market Gains: What You Should Know
Okta (OKTA - Free Report) closed at $75.56 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 11.35%.
Prior to today's trading, shares of the cloud identity management company had gained 9.5% over the past month. This has lagged the Computer and Technology sector's gain of 10.31% and outpaced the S&P 500's gain of 4.49% in that time.
Okta will be looking to display strength as it nears its next earnings release, which is expected to be March 1, 2023. On that day, Okta is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 155.56%. Meanwhile, our latest consensus estimate is calling for revenue of $488.99 million, up 27.67% from the prior-year quarter.
Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.63% higher within the past month. Okta is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 237.66 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.34.
Investors should also note that OKTA has a PEG ratio of 9.51 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software and Services was holding an average PEG ratio of 5.42 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.