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Okta (OKTA) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest market close, Okta (OKTA - Free Report) reached $71.02, with a -1.44% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.2%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, lost 0.59%.
The cloud identity management company's shares have seen an increase of 3.8% over the last month, not keeping up with the Computer and Technology sector's gain of 10.56% and the S&P 500's gain of 7.87%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 29, 2023. Alongside, our most recent consensus estimate is anticipating revenue of $559.76 million, indicating a 16.37% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.18 per share and revenue of $2.21 billion, indicating changes of +3050% and +19.14%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Okta is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Okta is holding a Forward P/E ratio of 60.96. This denotes a premium relative to the industry's average Forward P/E of 27.78.
Meanwhile, OKTA's PEG ratio is currently 1.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Internet - Software and Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Okta (OKTA) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Okta (OKTA - Free Report) reached $71.02, with a -1.44% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.2%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, lost 0.59%.
The cloud identity management company's shares have seen an increase of 3.8% over the last month, not keeping up with the Computer and Technology sector's gain of 10.56% and the S&P 500's gain of 7.87%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 29, 2023. Alongside, our most recent consensus estimate is anticipating revenue of $559.76 million, indicating a 16.37% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.18 per share and revenue of $2.21 billion, indicating changes of +3050% and +19.14%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Okta is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Okta is holding a Forward P/E ratio of 60.96. This denotes a premium relative to the industry's average Forward P/E of 27.78.
Meanwhile, OKTA's PEG ratio is currently 1.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Internet - Software and Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.