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Okta (OKTA) Dips More Than Broader Market: What You Should Know

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Okta (OKTA - Free Report) closed the most recent trading day at $72.40, moving -1.91% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 0.56%.

Heading into today, shares of the cloud identity management company had gained 1.69% over the past month, lagging the Computer and Technology sector's gain of 2.83% and the S&P 500's gain of 1.83% 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 per share (EPS) are projected to be $0.57, reflecting a 29.55% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $649.35 million, reflecting a 11.19% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.61 per share and a revenue of $2.56 billion, demonstrating changes of +63.13% and +13.19%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 51.89% rise in the Zacks Consensus EPS estimate. As of now, Okta holds a Zacks Rank of #2 (Buy).

Looking at valuation, Okta is presently trading at a Forward P/E ratio of 28.33. This denotes a premium relative to the industry's average Forward P/E of 17.89.

We can also see that OKTA currently has a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OKTA's industry had an average PEG ratio of 1.41 as of yesterday's close.

The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 41% of over 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.

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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