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Okta (OKTA) Stock Sinks As Market Gains: Here's Why
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In the latest market close, Okta (OKTA - Free Report) reached $67.99, with a -1.08% movement compared to the previous day. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1.7%, while the tech-heavy Nasdaq added 1.78%.
Prior to today's trading, shares of the cloud identity management company had lost 11.9% over the past month. This has lagged the Computer and Technology sector's loss of 0.81% and the S&P 500's loss of 1.14% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on November 29, 2023. Simultaneously, our latest consensus estimate expects the revenue to be $559.76 million, showing a 16.37% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.18 per share and a revenue of $2.21 billion, demonstrating changes of +3050% and +19.14%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Okta is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 58.15. This indicates a premium in contrast to its industry's Forward P/E of 22.96.
We can also see that OKTA currently has a PEG ratio of 1.54. 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 1.26 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Okta (OKTA) Stock Sinks As Market Gains: Here's Why
In the latest market close, Okta (OKTA - Free Report) reached $67.99, with a -1.08% movement compared to the previous day. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1.7%, while the tech-heavy Nasdaq added 1.78%.
Prior to today's trading, shares of the cloud identity management company had lost 11.9% over the past month. This has lagged the Computer and Technology sector's loss of 0.81% and the S&P 500's loss of 1.14% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on November 29, 2023. Simultaneously, our latest consensus estimate expects the revenue to be $559.76 million, showing a 16.37% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.18 per share and a revenue of $2.21 billion, demonstrating changes of +3050% and +19.14%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Okta is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 58.15. This indicates a premium in contrast to its industry's Forward P/E of 22.96.
We can also see that OKTA currently has a PEG ratio of 1.54. 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 1.26 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.