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Why Okta (OKTA) Dipped More Than Broader Market Today
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Okta (OKTA - Free Report) closed at $76.98 in the latest trading session, marking a -1.32% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.13%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.
Shares of the cloud identity management company witnessed a loss of 10.85% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.08% and the S&P 500's loss of 5.53%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. Meanwhile, our latest consensus estimate is calling for revenue of $559.72 million, up 16.36% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.17 per share and revenue of $2.21 billion, indicating changes of +3025% and +19.14%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.17% lower. Currently, Okta is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 66.8. This indicates a premium in contrast to its industry's Forward P/E of 23.66.
We can also see that OKTA currently has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software and Services industry held an average PEG ratio of 1.36.
The Internet - Software and Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
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Why Okta (OKTA) Dipped More Than Broader Market Today
Okta (OKTA - Free Report) closed at $76.98 in the latest trading session, marking a -1.32% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.13%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.
Shares of the cloud identity management company witnessed a loss of 10.85% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.08% and the S&P 500's loss of 5.53%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. Meanwhile, our latest consensus estimate is calling for revenue of $559.72 million, up 16.36% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.17 per share and revenue of $2.21 billion, indicating changes of +3025% and +19.14%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.17% lower. Currently, Okta is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 66.8. This indicates a premium in contrast to its industry's Forward P/E of 23.66.
We can also see that OKTA currently has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software and Services industry held an average PEG ratio of 1.36.
The Internet - Software and Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.