Okta (OKTA) closed at $76.50 in the latest trading session, marking a -0.09% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.3%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.27%.
The cloud identity management company's stock has climbed by 5.99% in the past month, exceeding the Computer and Technology sector's gain of 0.27% and the S&P 500's gain of 2.1%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. The company is scheduled to release its earnings on December 3, 2024. The company is predicted to post an EPS of $0.57, indicating a 29.55% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $649.42 million, reflecting a 11.2% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $2.56 billion. These totals would mark changes of +63.13% and +13.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.23% rise in the Zacks Consensus EPS estimate. Okta is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Okta is holding a Forward P/E ratio of 29.39. This denotes a premium relative to the industry's average Forward P/E of 17.19.
One should further note that OKTA currently holds a PEG ratio of 1.37. 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. As the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 1.79.
The Internet - Software and Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 20, this industry ranks in the top 8% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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