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Here's Why Okta (OKTA) Fell More Than Broader Market
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In the latest market close, Okta (OKTA - Free Report) reached $67.08, with a -0.92% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 1.12%, while the tech-heavy Nasdaq added 0.38%.
Shares of the cloud identity management company witnessed a loss of 16.89% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.16% and the S&P 500's loss of 2.65%.
Market participants will be closely following the financial results of Okta in its upcoming release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $559.76 million, up 16.37% from the year-ago period.
OKTA's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $2.21 billion. These results would represent year-over-year changes of +3050% and +19.14%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. At present, Okta boasts a Zacks Rank of #3 (Hold).
Investors should also note Okta's current valuation metrics, including its Forward P/E ratio of 57.28. This denotes a premium relative to the industry's average Forward P/E of 23.13.
We can also see that OKTA currently has a PEG ratio of 1.52. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. OKTA's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Okta (OKTA) Fell More Than Broader Market
In the latest market close, Okta (OKTA - Free Report) reached $67.08, with a -0.92% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 1.12%, while the tech-heavy Nasdaq added 0.38%.
Shares of the cloud identity management company witnessed a loss of 16.89% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.16% and the S&P 500's loss of 2.65%.
Market participants will be closely following the financial results of Okta in its upcoming release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $559.76 million, up 16.37% from the year-ago period.
OKTA's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $2.21 billion. These results would represent year-over-year changes of +3050% and +19.14%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. At present, Okta boasts a Zacks Rank of #3 (Hold).
Investors should also note Okta's current valuation metrics, including its Forward P/E ratio of 57.28. This denotes a premium relative to the industry's average Forward P/E of 23.13.
We can also see that OKTA currently has a PEG ratio of 1.52. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. OKTA's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.