The most recent trading session ended with Okta (OKTA – Free Report) standing at $78.83, reflecting a +0.04% shift from the previouse trading day’s closing. The stock’s change was more than the S&P 500’s daily loss of 0.22%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
The cloud identity management company’s stock has dropped by 8.49% in the past month, falling short of the Computer and Technology sector’s gain of 1.86% and the S&P 500’s loss of 2.36%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.73, reflecting a 15.87% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $668.8 million, reflecting a 10.55% rise from the equivalent quarter last year.
OKTA’s full-year Zacks Consensus Estimates are calling for earnings of $2.76 per share and revenue of $2.6 billion. These results would represent year-over-year changes of +72.5% and +14.75%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 121.19% higher. Okta is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 28.57. This signifies a premium in comparison to the average Forward P/E of 15.35 for its industry.
It is also worth noting that OKTA currently has a PEG ratio of 1.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Internet – Software and Services industry had an average PEG ratio of 1.2 as trading concluded yesterday.
The Internet – Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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