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Okta (OKTA) Ascends But Remains Behind Market: Some Facts to Note
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Okta (OKTA - Free Report) ended the recent trading session at $93.48, demonstrating a +0.4% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.64%, while the tech-heavy Nasdaq added 1.03%.
The cloud identity management company's stock has climbed by 0.8% in the past month, exceeding the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. In that report, analysts expect Okta to post earnings of $0.61 per share. This would mark year-over-year growth of 96.77%. Meanwhile, our latest consensus estimate is calling for revenue of $631.07 million, up 13.5% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.40 per share and a revenue of $2.53 billion, representing changes of +50% and +11.91%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Okta boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 38.76. This expresses a premium compared to the average Forward P/E of 25.73 of its industry.
Also, we should mention that OKTA has a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software and Services industry stood at 1.59 at the close of the market yesterday.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Okta (OKTA) Ascends But Remains Behind Market: Some Facts to Note
Okta (OKTA - Free Report) ended the recent trading session at $93.48, demonstrating a +0.4% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.64%, while the tech-heavy Nasdaq added 1.03%.
The cloud identity management company's stock has climbed by 0.8% in the past month, exceeding the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. In that report, analysts expect Okta to post earnings of $0.61 per share. This would mark year-over-year growth of 96.77%. Meanwhile, our latest consensus estimate is calling for revenue of $631.07 million, up 13.5% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.40 per share and a revenue of $2.53 billion, representing changes of +50% and +11.91%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Okta boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 38.76. This expresses a premium compared to the average Forward P/E of 25.73 of its industry.
Also, we should mention that OKTA has a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software and Services industry stood at 1.59 at the close of the market yesterday.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.