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Okta (OKTA) Stock Falls Amid Market Uptick: What Investors Need to Know
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Okta (OKTA - Free Report) closed at $72.15 in the latest trading session, marking a -0.01% move from the prior day. This change lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.76%.
Shares of the cloud identity management company witnessed a loss of 3.61% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.57, signifying a 29.55% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $649.35 million, indicating a 11.19% growth compared to the corresponding quarter of the prior year.
OKTA's full-year Zacks Consensus Estimates are calling for earnings of $2.61 per share and revenue of $2.56 billion. These results would represent year-over-year changes of +63.13% and +13.19%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 past month, the Zacks Consensus EPS estimate has moved 113.63% higher. At present, Okta boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 27.7. Its industry sports an average Forward P/E of 17.2, so one might conclude that Okta is trading at a premium comparatively.
Also, we should mention that OKTA has a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software and Services was holding an average PEG ratio of 1.38 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 154, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Okta (OKTA) Stock Falls Amid Market Uptick: What Investors Need to Know
Okta (OKTA - Free Report) closed at $72.15 in the latest trading session, marking a -0.01% move from the prior day. This change lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.76%.
Shares of the cloud identity management company witnessed a loss of 3.61% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.57, signifying a 29.55% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $649.35 million, indicating a 11.19% growth compared to the corresponding quarter of the prior year.
OKTA's full-year Zacks Consensus Estimates are calling for earnings of $2.61 per share and revenue of $2.56 billion. These results would represent year-over-year changes of +63.13% and +13.19%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 past month, the Zacks Consensus EPS estimate has moved 113.63% higher. At present, Okta boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Okta is currently trading at a Forward P/E ratio of 27.7. Its industry sports an average Forward P/E of 17.2, so one might conclude that Okta is trading at a premium comparatively.
Also, we should mention that OKTA has a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software and Services was holding an average PEG ratio of 1.38 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 154, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.