In the latest market close, Okta (OKTA) reached $96.98, with a -0.06% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.24% for the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.08%.
The the stock of cloud identity management company has risen by 8.55% in the past month, leading the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company is slated to reveal its earnings on March 3, 2025. It is anticipated that the company will report an EPS of $0.73, marking a 15.87% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $668.8 million, indicating a 10.55% increase compared to the same quarter of the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. Okta is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Okta is presently being traded at a Forward P/E ratio of 33.37. This represents a discount compared to its industry's average Forward P/E of 67.06.
One should further note that OKTA currently holds a PEG ratio of 1.41. 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 3.07 as of yesterday's close.
The Security 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 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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