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Okta (OKTA) Gains As Market Dips: What You Should Know
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Okta (OKTA - Free Report) closed at $72.56 in the latest trading session, marking a +0.54% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 1.58%.
Prior to today's trading, shares of the cloud identity management company had gained 5.05% over the past month. This has outpaced the Computer and Technology sector's gain of 0.99% and the S&P 500's gain of 0.84% in that time.
Investors will be hoping for strength from Okta as it approaches its next earnings release, which is expected to be March 1, 2023. The company is expected to report EPS of $0.10, up 155.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $488.99 million, up 27.67% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.63% higher. Okta currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 228.39. For comparison, its industry has an average Forward P/E of 22.69, which means Okta is trading at a premium to the group.
We can also see that OKTA currently has a PEG ratio of 9.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software and Services industry currently had an average PEG ratio of 5.22 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Okta (OKTA) Gains As Market Dips: What You Should Know
Okta (OKTA - Free Report) closed at $72.56 in the latest trading session, marking a +0.54% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 1.58%.
Prior to today's trading, shares of the cloud identity management company had gained 5.05% over the past month. This has outpaced the Computer and Technology sector's gain of 0.99% and the S&P 500's gain of 0.84% in that time.
Investors will be hoping for strength from Okta as it approaches its next earnings release, which is expected to be March 1, 2023. The company is expected to report EPS of $0.10, up 155.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $488.99 million, up 27.67% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.63% higher. Okta currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 228.39. For comparison, its industry has an average Forward P/E of 22.69, which means Okta is trading at a premium to the group.
We can also see that OKTA currently has a PEG ratio of 9.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software and Services industry currently had an average PEG ratio of 5.22 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.