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Okta (OKTA) Advances While Market Declines: Some Information for Investors

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Okta (OKTA - Free Report) closed the latest trading day at $94.03, indicating a +0.12% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.93%, and the Nasdaq, a tech-heavy index, lost 0.81%.

Heading into today, shares of the cloud identity management company had gained 8.55% over the past month, outpacing the Computer and Technology sector's loss of 3.88% and the S&P 500's gain of 1.08% in that time.

The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. In that report, analysts expect Okta to post earnings of $0.61 per share. This would mark year-over-year growth of 96.77%. At the same time, our most recent consensus estimate is projecting a revenue of $631.07 million, reflecting a 13.5% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.40 per share and a revenue of $2.53 billion, demonstrating changes of +50% and +11.91%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Okta. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained stagnant. Okta is currently a Zacks Rank #2 (Buy).

With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 39.1. This denotes a premium relative to the industry's average Forward P/E of 25.43.

Also, we should mention that OKTA has a PEG ratio of 1.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. OKTA's industry had an average PEG ratio of 1.59 as of yesterday's close.

The Internet - Software and Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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