In the latest market close, Okta (OKTA) reached $72.88, with a -1.06% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.39%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.6%.
Shares of the cloud identity management company witnessed a loss of 1.55% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.59% and the S&P 500's gain of 1.06%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on December 3, 2024. The company is forecasted to report an EPS of $0.57, showcasing a 29.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $649.42 million, indicating a 11.2% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $2.56 billion, which would represent changes of +63.13% and +13.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.23% increase. Okta is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Okta is presently being traded at a Forward P/E ratio of 28.27. This signifies a premium in comparison to the average Forward P/E of 17.2 for its industry.
It is also worth noting that OKTA currently has a PEG ratio of 1.32. 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 was holding an average PEG ratio of 1.5 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
